Gerry Weber International, a Halle/Westphalia, Germany-based company with five brands under its roof, has agreed to acquire from Change Capital Partners all shares in Munich-based Hallhuber, the company said Tuesday.
Weber said the acquisition of the manufacturer and retailer Hallhuber continues its growth strategy and will allow Weber to convert its business into a fully vertical model.
Hallhuber and Hallhuber Donna will be managed as stand-alone brands within the Gerry Weber portfolio, benefitting from Weber’s operational know-how in sourcing, retail expansion and logistics. Weber, which was on the hunt for acquisitions, said Hallhuber will contribute to its profitability.
Gerry Weber, which is one of Germany’s best-known brands, operates some 778 stores worldwide called House of Gerry Weber. In addition, Weber’s brands are sold in 2,770 in-store shops and online. The company in 2013 had sales of 852 million euros or $1.03 billion at current exchange.
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Hallhuber generated sales of 109.2 million euros or $132.9 million in 2013. The vertical company operates 94 stores, 12 outlets and 113 concessions in six countries. About 82 percent of Hallhuber’s business is done in Germany.
The Hallhuber lines don’t serve the same consumer as Weber’s brands so there won’t be any overlap. Hallhuber targets a younger clientele — mainly trend-oriented women in their 30s. Gerry Weber and Taifun speak to women in their 30s and older who have a strong sense of style and are looking for feminine apparel. Samoon caters to plus-size women. There’s also Gerry Weber Accessories, G.W. and Gerry Weber Edition.
Norbert Steinke, chief executive officer of Hallhuber, said the company has had an annual growth rate of 21 percent. “We’ve launched Hallhuber on the road to internationalization,” he said. “This [acquisition] will open up new growth prospects for our future.”
“Hallhuber is looking at enormous sales and profit potential,” said Dr. David Frink, chief financial officer and speaker of the managing board of Gerry Weber. “They are ready to move into new European markets.”