PARIS – BlueGem Capital Partners has acquired DMC SAS and plans to transform the French thread maker into a leading craft and hobbies industry player.

The London-based private equity firm, whose investments include Liberty department store in London, purchased 100 percent of DMC through a newly created holding company, called Cotton Holding. BlueGem Capital Partners declined to disclose financial details of the deal.

The development strategy for DMC will be two-pronged. One aim is to push the organic growth of its needlework threads business by injecting more contemporary collections, expanding the accessories range and rejuvenating the brand’s image, as well as intensifying its presence online, including through social media, according to a statement released on Wednesday. BlueGem Capital Partners also wants to seize upon new growth opportunities for DMC in the knitwear and crochet segments.

Current management, including Dominique Poile, DMC chief executive officer, is to remain in place at the company.

In a linking thread, BlueGem Capital Partners in early August acquired Wool and the Gang, the playful e-commerce-driven British fashion and lifestyle brand specializing in crochet and knitting kits targeting a young consumer.

The history of DMC, which is based in Mulhouse in France’s Alsace region, stretches back two-and-a-half centuries. Originally named Dollfus-Mieg & Compagnie, it grew out of a fabric printing business founded by Jean-Henri Dollfus, Jean-Jacques Schmalzer and Samuel Koechlin in the 18th century.

Today DMC manufactures consumer threads, industrial threads and textile-related products and is distributed in more than 40,000 sales points in 85 countries. The company has three divisions: Loisirs & Creation, DMC Creative World and Sportswear Fabrics.

BlueGem Capital Partner’s other investments include Mamas & Papas, a designer, wholesaler and retailer of baby products, and Enotria Wine Group. The private equity concern targets medium-sized European companies – whose sales range from 50 million euros to 200 million euros, or $56.2 million to $224.7 million at current exchange – with brands capable of becoming international leaders in their categories.