Shoe retailer Obuv.com, co-owned in April by ex-shareholders of the Lenta chain, Dmitry Kostygin and August Meyer, is in talks to purchase Swiss-based shoe manufacturer Masai Barefoot Technology (MBT). Its assets, including trademarks and patents for original sports shoes, can cost up to $ 50 million.
The fact that in June this year negotiations began between MBT and Obuv.com, said a source close to the Russian company. One of its shareholders and a former co-owner of the Lenta grocery chain Dmitry Kostygin confirmed this information, adding that negotiations are in the initial stage and no documents have been signed yet.
In early summer, the Leonardo & Co. investment company acted as consultants for the sale of MBT. Its director, Fabian Denneborg, said the company was no longer looking for a buyer, declining to comment further. MBT itself also did not provide comments.
The Swiss company’s intellectual property is on sale - trademarks and patents (for shoes with a special rounded sole), - lease rights for 20 single-brand stores in Switzerland, inventories and equipment in stores, a source close to MBT said. In Russia, the company has 18 outlets, but they work on franchising with the Payana company. These objects will not be included in the transaction.
Dmitry Kostygin believes that the asset may cost $ 20-50 million. MBT last disclosed its revenue in 2007, when it amounted to $ 211,9 million. Managing partner of Pollyanna Capital Partners Nikolay Gabyshev says that since then the European shoe market has grown by 3-4%. That is, MBT revenue by the end of 2011 could be $ 248 million. Mr. Gabyshev estimated the office at almost $ 50 million, based on the multiplier of 0,2 revenue before debt.
The Swiss shoe company Masai Barefoot Technology (MBT) is engaged in the production and sale of shoes with unusual round soles. Production facilities are located in South Asia - in China, Indonesia and Vietnam there are seven factories. The company's retail network is represented by 20 monobrand outlets in Switzerland on leased space, and the company's stores are developed on a franchise and exclusive distribution basis in 35 countries.
Obuv.com was created about two years ago. The co-owners of the company are Sergey Rukin and former co-owners of the Lenta hypermarkets August Meyer and Dmitry Kostygin, who for two bought 40% of the company for $ 25 million in April this year. The chain unites 75 stores in Russia with an average area of 150-200 square meters. m, forecast by the end of 2012 - 100 points. The network operates in the low price segment (average check is approximately 1 thousand rubles). Revenues in 2011 - 700 million rubles. ($ 23,8 million at the average rate for the year), the forecast for 2012 is from 2,5 billion to 3 billion rubles. ($ 77-92 million at the Central Bank rate on Friday).
MBT was put up for sale in May 2012, after it was unable to cope with its debt obligations, and at the end of 2011 recorded low sales and losses that were not disclosed, local media reported. Dmitry Kostygin explains that Obuv.com is looking for new and interesting niche projects for itself. “Perhaps MBT is just that option. For example, in Switzerland, almost everyone goes in sneakers from MBT to work and for walks, ”he said. Mr. Kostygin recalled that when buying a stake in Obuv.com, the former shareholders of Lenta expressed their willingness to invest up to $ 100 million (taking into account $ 25 million for a share of 40%), which can be used for development, in particular for M&A transactions. About this newspaper Kommersant.