Polish retailer of footwear SSS acquires Romanian franchise of the brand

footwear SSSThe Polish retailer of footwear SSS has signed a non-binding agreement to purchase the company that owns the franchise for the brand in Romania. The transaction price is 33 million EUR.

Seller is Peeraj Brands International – a Romanian company with investors from Dubai. Peeraj, one of the biggest players on the local fashion market, is currently operating 54 stores under the SSS brand in Romania.

SSS’s network in Romania recorded sales of 38 million EUR and profit of around 5.5 million EUR.

In the first ten months of 2017, the sales increased by 28% compared to the same period in 2016.

“Completion of the transaction depends on a number of conditions, such as the relevant corporate transformation of the Peeraj SSS, obtaining the necessary corporate and regulatory approvals, including approval by the relevant competition authority, finalization of the due diligence and other standard terms for this type of transaction”, said SSS.

The completion of the deal is expected in the second quarter of 2018.

Peeraj Brands International is one of the most important players in the local fashion market. The company operates around 100 stores under various brands – SSS, Pimkie, Swarovski, Geox, Kazar, Piazza Italia and Armani Jeans.

The Group reports a turnover of 51 million EUR and a net profit of 1.83 million EUR in 2016. Its employees are over 650, according to official data of the Romanian Finance Ministry.