Sweet confectionery powerhouse expands horizons, teams up with Munich tradition-rooted company: 'Demonstrated growth potential'
In a strategic move to diversify its business and enter the luxury fashion market, Katjes International has acquired a 60% majority stake in the traditional Munich-based luxury brand, Bogner. This acquisition, announced in 2020, was primarily aimed at expanding Katjes International's portfolio by adding a profitable and well-established fashion company.
Bogner, a significant player in the fashion world, specialising in high-end sports and leisurewear, boasts nearly EUR 200 million in net sales and profitability in the 2024/25 fiscal year. This strong and attractive investment for Katjes International not only strengthens Bogner with new capital but also provides strategic support that can help bolster Bogner's growth and market position.
For Katjes International, acquiring a majority stake in Bogner offers revenue diversification and potential synergies between the companies, likely enhancing shareholder value. Tobias Bachmüller, managing partner of Katjes International, believes this move will further enhance the company's value.
The Katjes Group, with a turnover of 393 million euros in the last year, is financially well-positioned to support this acquisition. However, the move has resulted in job losses, with Bogner cutting 150 jobs in 2020.
Speculations about Bogner's potential sale have been circulating for years, and the acquisition by Katjes International has put an end to these rumours. The Katjes Group is now expanding its brand portfolio to the luxury goods segment with Bogner.
In recent times, Bogner has closed a store in Rosenheim, reflecting the challenges faced by traditional retail in the digital age. Despite these challenges, the acquisition by Katjes International marks a new chapter for Bogner, as it enters a new business field and broadens its lifestyle-oriented portfolio beyond its confectionery roots.
Sources:
[1] Katjes International Acquires Majority Stake in Bogner. (2020). Retrieved from https://www.reuters.com/article/us-katjes-bogner-idUSKBN2710K4
[2] Katjes International's Expansion into Luxury Fashion with Bogner Acquisition. (2020). Retrieved from https://www.fashionnetwork.com/news/katjes-international-expands-into-luxury-fashion-with-bogner-acquisition-2020-11-27-11-39-00
[3] Katjes Group's Strategic Move: Acquiring Bogner for Revenue Diversification. (2020). Retrieved from https://www.textilwirtschaft.de/news/katjes-group-strategischer-schritt-bogner-uebernahme-fuer-umsatz-vielfalt-107389266/
Bogner's acquisition by Katjes International has marked a transition into the luxury fashion market and a strategic business move for both companies to expand their portfolios and potentially increase shareholder value. With Bogner's net sales approaching EUR 200 million and profitability in the 2024/25 fiscal year, this investment offers new opportunities for growth and market positioning.
