Propago, a private equity investment firm based in Norway, bought a 67 percent stake in Dale of Norway last June, with a plan to help revitalize its flagging sales. Under Tor Anderson, who replaced Olav Munch as managing director in connection with the change of ownership, this vertically integrated Norwegian supplier of high-end wool sweaters wants to regain lost ground in Germany and in other European countries and in the USA. At a later stage, it may diversify from wool into other materials.
Anderson is a partner in Progago, which bought the company from the Winder group, formerly the sole owner, which now retains one-third of the shares. Propago has so far injected $5 million into Dale for product development, to help design and produce a whole new range of knitwear and bring the brand back out on top in its segment of the market.
Dale had a loss on turnover of NK 130 million (€16.9m-$23.4m) in the last financial year. Sales have declined in 2006 and 2007 in various European markets, especially in Germany, and they could not be offset by increases in Norway and in the USA.
