Partner Article

Leeds Group’s German subsidiary acquires €500k haberdashery firm

Leeds Group plc has announced that its German subsidiary, Hemmers has reached agreement to acquire 50% of the issued share capital of haberdashery firm KMR for a consideration of €500k (£400k).

KMR is a retailer of fabric and haberdashery, operating a total of fourteen leased shops located in the states of Rhineland-Palatinate (5 shops), Baden-Württemberg (4 shops), Hesse (3 shops), Lower Saxony (1 shop) and North Rhine-Westphalia (1 shop).

KMR’s sales revenue in the year ended 31 December 2013 was €6.18 million, and its pre-tax profit was €392k.

The 50% shareholding not acquired by Hemmers is owned by Mr Eric Maat, and he and Mr Jörg Hemmers, the managing director of Hemmers, will comprise the board of KMR.

KMR will be operated as a joint venture and will be accounted for by Leeds Group under the equity method.

The directors of Leeds Group say they regard this joint venture as a logical addition to the existing fabric wholesale operations of Hemmers. KMR is a successful business which sources approximately 30% of its purchase requirements from Hemmers.

This was posted in Bdaily's Members' News section by Clare Burnett .