MILAN — BasicNet has inked a deal to acquire Woolrich from L-Gam, the Luxembourg-based fund established in 2013 with the support of the royal family of Liechtenstein and families from Europe, Asia and the United States.
The publicly traded, Turin-based BasicNet Group is the owner of the brands Kappa, Robe di Kappa, K-Way, Superga, Sebago and Briko.
In a statement issued at the end of trading in Italy, co-chief executive officers of BasicNet Lorenzo Boglione and Alessandro Boglione said, “Woolrich is an extraordinary brand, with a history and identity that make it unique in the international outerwear landscape. It represents exactly the kind of cultural and authentic heritage we aim to preserve, enhance and relaunch.
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“This is a perfectly coherent operation with our long-term vision, based on dynamic and responsible brand management. The acquisition comes in a complex economic context, but we are convinced that the strength of our model and the experience of our team will allow us to return the brand to growth.”
The historic American brand Woolrich was founded in 1830 by John Rich in Pennsylvania, and is one of the oldest American producers of wool fabrics and outdoor clothing. The company was created to provide durable and functional garments for hunters, lumberjacks and railway workers.
In 1850, Woolrich introduced its signature Buffalo red and black check pattern. In 1940, responding to the needs of workers building oil pipelines in Alaska, the Arctic Parka was born — designed to withstand extreme temperatures and another signature garment for the brand.
Felipe Merry del Val, founder and partner of L-Gam Advisers, said “with BasicNet’s support, Woolrich will continue to grow internationally and strengthen its leadership in the outdoor lifestyle segment.”
L-Gam acquired Woolrich in 2018 from its former owner, WP Lavori in Corso.
Lorenzo Flamini, CEO of Woolrich, added that “this operation marks a new phase in the history of Woolrich, aimed at strengthening the brand’s identity and expanding its international presence, while enhancing nearly 200 years of history and reinterpreting the brand’s iconic and distinctive elements in a contemporary way.”
The transaction involves the acquisition, through a wholly owned BasicNet subsidiary, of the rights to the Woolrich brand for Europe and 100 percent of Woolrich Europe SpA, the company managing its distribution and retail activities. Its revenues for fiscal-year 2025 are expected to be around 90 million euros, for a total enterprise value of 90 million euros.
Part of the deal, amounting to 40 million euros, will be paid for 12 million euros through the transfer of 1.2 million BasicNet ordinary shares at a value of 10 euros each.
In addition, the seller may receive an earn-out based on the achievement of certain net result and revenue levels at the end of the 2026 to 2028 three-year period.
The transfer of the shares will be subject to a 24-month lock-up period starting from the closing date.
The transaction is expected to be completed by December.
In an interview, both Lorenzo and Alessandro Boglione described the acquisition as “a dream come true.”
Lorenzo touted the “very strong distinctive signs of the iconic Woolrich garments. If you had told me 10 years ago we would be buying Woolrich, it would have been hardly imaginable.”
Alessandro concurred, saying that “it was impossible not to consider buying this brand. We worked for years to find ourselves in this position,” pointing for example to the sale of a 40 percent stake in K-Way to Permira in October last year at an enterprise value, including the IFRS 16 standard, of 505 million euros. “Sure, the market is complicated but it also brings opportunities we can catch if we are in a strong financial position.”
His brother said having different brands with such singular identities offers “a competitive advantage for the future. It’s fundamental to grow in size.”
They pointed to additional acquisitions going forward but did not elaborate on financial plans and expectations.
Asked about how the brands are chosen, Lorenzo said “it’s a gut decision, there must be that immediate spark. It’s not important that they fit with the others but that they fit with BasicNet, our business model, our way of working in the high-quality sportswear segment we are familiar with.” He expressed his confidence in BasicNet being able to “interpret Woolrich and bring added value to it, strategically, in terms of product and marketing. We have a motor, BasicNet, which knows how to manage and grow the business of our brands through synergies and at an intellectual level.”
There are currently 25 Woolrich stores in Europe.
Last December, Chinese apparel group Baoxiniao Holding Co. Ltd. acquired Woolrich’s intellectual property rights for all territories outside Europe.
BasicNet was founded by Lorenzo and Alessandro Boglione’s father Marco Boglione, who conceived the group in 1994 as a marketplace and publicly listed it on the Milan Stock Exchange in 1999.
Stemming from the storied traditional clothing company Maglificio Calzificio Torinese, which was founded in 1916, BasicNet doesn’t produce or distribute the collections of its brands. Billing itself as a “fully web-integrated company” through a digitally advanced platform, it acts as a marketplace where manufacturers and distributors meet to do business.
In particular, BasicNet designs and develops its labels’ collections, signs licensing agreements with international producers and distributors, which receive from BasicNet all they need to manufacture and sell the products, from research and development to global marketing.
BasicNet logged consolidated 2024 revenues of 409.2 million euros, up 3.1 percent from 396.8 million euros in 2023.
This included direct sales of 346.8 million euros, up 4.2 percent on 2023, and royalties from commercial and production licensees of 60.9 million euros, a 2.2 percent decrease.
In 2024, group earnings before interest, taxes, depreciation and amortization totaled 61.1 million euros, up 5.1 percent from 58.1 million euros in 2023, despite increased investments in sponsorships and communication and human resources, reflecting the group’s commitment to develop the brands.
In late 2023, Todd Snyder was named creative director of the newly formed line Woolrich Black Label, the company’s upscale division that combines its outdoorsy bent with a luxury offering defined by a modern aesthetic. The move was seen as aiming to expand Woolrich’s footprint in the U.S. market. Asked about the future of this project, the Bogliones said it was premature to discuss this topic.