The Tecnica Group has signed an agreement in principle to sell its Dolomite brand to an American equity fund, Symphony Global Brands of Washington, D.C., at a basic price of €6.7 million, plus the value of its inventories and other assets. Officials of the Italian company cautioned that the deal has not yet been finalized and is subject to due diligence. They also pointed out that they had rejected a higher-priced offer of €8 million because Symphony has agreed to retain most of Dolomite's employees and its assets.
Dolomite is profitable and is generating annual revenues of more than €18 million. Started in 1897, it is the oldest outdoor brand from the region of Montebelluna. Lately it has been developing a wide range of lifestyle apparel and footwear, repositioning itself in the fashion segment of the market in recognition of its strong heritage.
Tecnica, which bought Dolomite in 1998, wishes to concentrate on its more technical core business in the sports and outdoor sector with its numerous brands, including Tecnica itself, Nordica, Blizzard, Lowa, Moon Boot and Rollerblade. For the same reason, the group sold Think Pink three years ago, company officials noted.
They stressed that Tecnica is not being forced to sell Dolomite because of any cash problems. In fact, the group continues to reduce its debts. The management predicts that it will grow this year by around 5 percent to between €330 million and €340 million, generating a positive operating profit before amortization (Ebitda) of around €20 million.
They said that the sale of Dolomite is not related to the negotiations that the group is holding with its banks about a rescheduling of its debts, but rather to a strategy to focus on the brands that have the highest turnover.
