A transaction has been prepared and concluded by Rietumu Bank on the financing of the business of international group of companies European Lingerie Group (ELG). The total amount of financing is EUR 27 million.
European Lingerie Group (ELG) is a fully vertically integrated intimate apparel and lingerie group with its main production located in the Baltics, Hungary and Germany and with sales worldwide in 46 countries and online. ELG produces fabrics for lingerie products under the brand Lauma Fabrics and supplies leading lingerie manufacturers in Europe and rest of the world. ELG also designs, manufactures and sells branded premium lingerie under the brands Felina, Conturelle and Senselle. ELG also owns Dessus-Dessous, the largest online retailer of lingerie and swimwear in France and operates in medical textiles under Lauma Medical brand.
As a result of the transaction, Rietumu Bank has provided ELG with the necessary financing to stabilize the group's financial position which was impacted by the Covid-19 pandemic. Rietumu Bank has also acquired 30% of the equity of ELG.
“For the financial market of Latvia, this is not a standard transaction – not so much in its scale as in its nature. The bank has not only provided its client with the debt financing, which is especially necessary in the period of the pandemic and resulting trading limitations, but has also become the partner of ELG, directly interested in the success and development of the company,” quoted Arthur Juksh, Head of the Lending Department of Rietumu, “Besides that, I would like to emphasize the high complexity and international nature of the transaction: counterparties from a number of countries, including the Baltics, Germany, Sweden and Hungary, represented by top tier law firms and consultants were working on the transaction structuring and its completion. Certainly, Rietumu Bank has a significant experience in many international transactions; however, this transaction stands out as one of the most challenging and complicated one so far,” explains Mr Juksh.
“Our objective was to attract
a partner who would be equally interested in business success and prosperity,
entering new markets, aiming higher and would be ready to work on the ambitious
projects, implementing long-term plans and creative business ideas. We have
found like-minded people in Rietumu Bank who have fully appreciated our
potential and have provided required financing in form of the debt and the equity.
I am confident that this deal will allow us to go through difficult times and
to refocus on the further development of our business in the near future,” quoted
Indrek Rahumaa, principal shareholder and Member of the Board of ELG.
European Lingerie Group is headquartered in Latvia and its production is located in Latvia, Germany, Hungary and other countries. In Latvia, ELG owns Lauma Fabrics in Liepaja whereby the building of the main production site of Lauma Fabrics is ranked among 10 largest factories in the world and exceeds 100 square meters under one roof. ELG employs more than 1000 employees worldwide and its largest markets are Baltic countries, Germany, France, Russia, Poland, Benelux countries, Spain, Italy, Ukraine and others.
The Financial Statement of the bank and Rietumu Group for the first quarter of 2021 has been published.