BlueGem acquires French textile group DMC

Alice Tchernookova
07 June 2016

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BlueGem Capital Partners has acquired Alsace-based textiles group DMC, marking the GP's first French investment.

The deal EV is included within the €35-40m bracket. BlueGem is acquiring 100% of the group's capital, which marks the exit of previous investors Krief Group (40%), the management team (10%) and several Alsace-based investors (50%).

The acquisition was made through Cotton Holding – a newco created for the transaction – and was funded in equity and debt, with a more significant portion of equity.

Bernard Krief Consultants had undertaken to turn the company around after DMC filed for bankruptcy following a serious slow-down in its activity in 2008. BlueGem will look to grow the company organically by modernising and diversifying its offer, and will also consider the acquisition of external associated groups, the GP said in a statement.

The group should maintain its production activity in France. The company's current president Dominique Poile will retain his current position, sharing the direction with another president to be appointed by BlueGem, a source close to the matter said. Other appointments will also be made, especially within the sales team, the same source added. BlueGem will target opportunities for DMC in the tricot and crochet fields.

To achieve organic growth, BlueGem intends to develop contemporary product lines, diversify its range of accessories, boost online and social media promotion, and modernise the brand's identity.

Meanwhile, the GP will seek potential external acquisitions, especially businesses specialised in knitting and crochet.

Company
Dollfus-Mieg et Cie (DMC) was founded in Mulhouse in 1746 as a manufacturer of hand-painted Indian prints. For many years the business was a fabric printing business only.

It later diversified its activity, developing into a business that manufactures and distributes embroidery floss, craft fabrics and needlework materials.

The company now counts 300 employees, 200 of whom are based in France, and distributes its products in 85 countries via 40,000 selling points. Last year it generated €57m of turnover.

People
BlueGem – Mathieu Develay (investment manager).