Sonae has reached an agreement to sell its fashion brands MO and Zippy to a consortium comprising Francisco Pimentel, the current CEO of MO, and the Mercúrio Fund from Oxy Capital, according to an official statement.
The transaction is expected to generate approximately 20 million euros for Sonae, with the deal anticipated to close by the end of the first half of this year.
In a separate statement issued by the Comissão do Mercado de Valores Mobiliários (CMVM), Sonae confirmed that the total value of the transaction amounts to roughly 20 million euros, which will result in a statutory, non-monetary accounting loss of about 24 million euros. The company indicated that the agreed valuation aligns with the net asset value (NAV) reported in Sonae’s most recent financial results announcement.
Sonae emphasized that this sale agreement represents a Management Buy Out (MBO), which involves the current management team’s acquisition, underscoring their investment and commitment to the business.
For Sonae, this aligns with its strategy of active portfolio management, aiming to find the best growth opportunities for its businesses.
Both MO and Zippy were founded by Sonae. MO is a retailer specializing in fashion and accessories for the entire family, operating over 120 fashion stores in Portugal, alongside a business area focused on managing the textile category for leading international retailers.
Zippy specializes in children’s apparel and is present in more than 40 countries.
The transaction’s completion is contingent upon the fulfillment of standard conditions for such deals, including approval by the Competition Authority. The parties expect to finalize the process by the first half of 2025.
Both brands will continue under their respective management teams, with Francisco Pimentel taking on global leadership.
