Greek company Elmec Sport, the domestic importer of brands such as Nike, Reply Miss Sixty, Calvin Klein and Converse, is to be taken over by the naval operations group Laskarides, according to information provided by the clothing retailer.
Elmec Romania, the domestic arm of the Greek group, is an important element in the deal owing to the 34m-euro assets it holds, as well as its future plans to consolidate its position on the market.
"As yet, we cannot be sure what financial impact the deal will have on the company, but we can certainly confirm that talks will be finalised very soon," stated the main stakeholders in Elmec Sport, Sam Fais and Lucy Fais in their notification to the Athens Stock Exchange.
The deal would involve the 51% majority stake in Elmec being acquired via the Athens Stock Exchange, on which the company is listed.
The April 20th trading session closed with Elmec shares at 3.30 euros, valuing the company at around 182m euros. According to these figures, the 51% majority stake that is to be traded could be worth around 91m euros. Given that Elmec Romania accounts for 20% of the group's turnover and taking into consideration the market capitalisation of Elmec Sport, the Romanian subsidiary is worth approximately 36m euros.
According to the company's activity report, the assets of the Romanian subsidiary were assessed at 34.5m euros and include- 36 stores out of a total of 130 internationally owned outlets, a 6,000 square metre building on the intersection between Magheru Blvd. and Ion Campineanu street (which is to be turned into a store), the Welness centre within the Plaza Romania shopping centre and also an office construction project in Otopeni. At the same time, through the Microcom DOI Company, Elmec Sport is participating in the development of a shopping centre covering 122,000 square metres located in Craiova, through investments worth 80m euros.
Plans to be carried out in the near future on the domestic market include the opening of another 10 stores and the finalisation of present investments, as well as launching the Otopeni project by the middle of this year, the Greek company's annual report says.
In 2006 Elmec Romania generated a turnover worth 33.9m euros accounting for around 20% of the group's overall revenues and more than double the turnover in 2005, which stood at 15.3m euros.
Internationally (the company also has operations in Greece, Bulgaria and Cyprus), Elmec Sport turnover totalled 181m euros in 2006, amid operating an income of 7m euros.
On the Romanian market of sporting goods, Elmec's main competitors include Extenso (the importer of brands Lotto, Stonefly and Gas), the RTC group (owing the Esprit and Springfield brands), Errea, Adidas, Puma and Reebok.
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