Stockholm - European Lingerie Group, the vertically integrated manufacturer of intimate apparel and lingerie has acquired Yustyna Ltd, a lingerie and garment producer based in Belarus.
Financial terms of the deal were not disclosed.
The acquisition is part of ELG's continued strategy to expand operations and add capacity for its private label and branded operations. The family owned Yustyna Ltd., which was founded in 1990, produces lingerie and other underwear for well-known brands in Belarus. It currently employs 66 people.
The deal was completed in January with the company subsequently renamed Senselle Ltd, after the newest addition to the ELG brand portfolio, Senselle by Felina, launched in the end of 2018. The aim is to produce all of Senselle by Felina in the Belarus unit, which is located close to the brand’s main markets, Eastern Europe and CIS countries.
"With this acquisition we gained an additional production platform and added competence for ready-made garment production," said Peter Partma, CEO, ELG. "So far, we have used subcontractors in Belarus and with this step we will have an advantage over competitors in production planning, at the same time offering more value to our customers.
"Having a production unit in Belarus allows us to be close to our main markets, so we can provide short delivery times, react quicker to market demands and have a sustainable cost structure. We also plan to expand the current operations of the company, so as to add capacity for private label production."
The acquisition will not impact ELG's profitability for 2019, but will have a positive cost impact in the coming years on the production of lingerie ready garments. ELG said it also plans to invest in new knitting machinery as part of a plan to update the Yustyna facility.
"With subcontractors we cannot control in detail their work environment, but with this now being our own unit, our target is to bring the company up to internationally recognized social corporate responsibility standards, so that the business is fully transparent," Partma added.
ELG produces lace and fabrics for some of the market's largest lingerie brands under the Lauma Fabrics brand name, and medical textiles under the Lauma Medical brand. It also designs, manufactures and distributes branded premium lingerie garments under Conturelle, Felina and Senselle brands. ELG also owns Dessus-Dessous, the largest online retailer of lingerie and swimwear in France.
Headquartered in Sweden, it operates its own production facilities in Latvia, Hungary and Germany and has customers across 46 counties worldwide.
In 2017 it had employed 1,332 people with a total revenue of €73 million.