Munich, May 12, 2015 – LUDWIG BECK AG today acquired all shares in WORMLAND Unternehmensverwaltung GmbH via a subsidiary. The parties agreed to keep the purchase price secret.
Through its subsidiary Theo Wormland GmbH & Co. KG, WORMLAND Unternehmensverwaltung GmbH operates a total of 15 German textile retail branches in prime locations and an associated online shop. WORMLAND is a specialist supplier in the field of men’s fashion with high-level competence, an exceptional reputation and a significant market position in this segment. Based on WORMLAND‘s expertise in chain store operations it will be possible to tap additional growth potentials in the future.
Thus, the acquisition of WORMLAND is of strategic significance. So far, LUDWIG BECK has stood primarily for premium women‘s fashion and non-textile product ranges like cosmetics and sound recordings. With the acquisition of WORMLAND, LUDWIG BECK will become one of the top addresses in Germany also in the field of men’s fashion.
WORMLAND‘s gross sales amounted to approximately € 79.6m in 2014, generated with a staff of 465 employees on a sales area of approximately 13,600 sqm.
On account of the acquisition of WORMLAND, LUDWIG BECK’s forecast for the year 2015 has to be adjusted. The management now expects sales to increase by approximately 60% (previously 2 - 4%). With the pro-rated sales of WORMLAND included, LUDWIG BECK could thus attain accumulated gross sales of approximately € 164m in aggregate in 2015 (previous year: € 102.7m). The anticipated earnings before interest and taxes (EBIT) are expected to rise considerably to approximately € 17 - 19m (previously approximately € 10m) – basically due to non-recurring effects.