SuperGroup has acquired the leading global franchisee of its Superdry brand CNC Collections BVBA (CNC) to push international expansion.
The €40m (£33.8m) acquisition of its French and Benelux distribution partner, which manages 29 franchised stores, will allow the retailer to capture greater margins on growing sales in Belgium, the Netherlands, Luxembourg and France and accelerate its international franchise roll out.
CNC owner Luc Clément is joining SuperGroup as head of european franchising and the exisiting CNC operational team will also stay on board. The fashion retailer, which operates Superdry and Cult Clothing, expects sales to exceed €40m (£33.8m) and consolidated profits to increase in the region of €8m (£6.8m) in its first year of ownership.
The retailer will continue to roll out across Benelux and France, with further company owned and franchised stores.
SuperGroup chief executive Julian Dunkerton: “The acquisition of CNC is a major step in our European growth strategy, allowing us to capture additional gross profit in four key territories, driving our franchise acceleration and opening the possibility of company owned larger format stores in key shopping centres across Europe.”