European Lingerie Group acquires Yustyna, a lingerie ready garment producer in Belarus
European Lingerie Group AB (ELG) announces the acquisition of Yustyna Ltd, a women's underwear ready garment producer in Belarus. The acquisition is part of the Group’s strategy to expand operations and add capacity for private label and Senselle brand production.
The company was acquired in January 2019 and subsequently renamed Senselle Ltd, after the newest addition to the Group’s brand portfolio, Senselle by Felina, launched in the end of 2018. The target 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. 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,“ commented CEO of ELG Mr. Peter Partma.
„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,“ said Mr. Partma.
„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,“ added Mr. Partma.
The acquisition will not impact the Group profitability for 2019, but will have a positive cost impact in the coming years on the production of lingerie ready garments. The deal was financed by the Group’s own resources, the purchase price is not disclosed. The Group plans to have additional CAPEX investments in the acquired plant to update some of its production machinery.
Yustyna Ltd has been a family run business, founded in 1990, producing ready garment underwear for well-known brands in Belarus. It currently employs 66 people.
For further information, please contact:
Silver Pukk
Director of Communications
European Lingerie Group
silver.pukk@elg-corporate.com
+372 509 7147
European Lingerie Group AB (ELG) is a fully vertically integrated intimate apparel and lingerie group with main production located in the Baltics, Hungary and Germany and with sales worldwide in 5000 points of sale in 46 countries and online. The Group produces fabrics for lingerie garments under the brand Lauma Fabrics and supplies leading lingerie manufacturers in Europe and rest of the world. The Group designs, manufactures and sells branded its own premium lingerie under the brands Conturelle, Felina and Senselle. ELG also owns Dessus-Dessous, the largest online retailer of lingerie and swimwear in France. The Group is headquartered in Stockholm, Sweden. More information available at www.elg-corporate.com.