Palamon Capital Partners has acquired a majority stake in Happy Socks from Scope Growth III.

The transaction values Happy Socks at 725 million Swedish Krona, or $81.2 million. Palamon will also provide 40 million in Swedish Krona, or nearly $4.5 million, of growth capital to support the expansion of the business. That combination gives Happy Socks a post-money enterprise value of 765 million Swedish Krona, or nearly $85.7 million. All conversions are at current exchange.

Happy Socks was founded in 2008 in Sweden by Mikael Söderlindh and Viktor Tell. The company has grown into an international sock design brand that is sold in 90-plus countries, with more than 10,000 points of sale. The business includes an online site and a growing portfolio of company-owned stores. In 2016, the brand generated retail sales of 100 million euros, or $106.4 million.

The founders will remain involved in the company following the transaction.

Söderlindh said, “We have transformed the company into a real growth engine by strengthening our operational platform and our global presence. We have achieved the best of both worlds by securing a strong new partner in Palamon and remaining significant owners in a great business that we will continue to build in the years to come.”

Ali Rahmatollahi, a Palamon Capital partner, said, “Happy socks is a phenomenal company with a very distinctive brand DNS that resonates with consumers around the world. Palamon’s investment stems from the firm’s ongoing effort to identify well-positioned European specialty retail brands with strong growth potential in a global market.”

Palamon is a pan-European growth investor. Its previous investments in the special retail sector include German online retailer of designer apparel dress-for-less; pure-play U.K. e-tailer of premium beauty products and Italian leather goods brand Il Bisonte.