Palamon Capital Partners, London-based private equity firm, has acquireda majority stake in Swedish socks and underwear brand, Happy Socks. The transaction values Happy Socks at SEK 725 million (US $80.9 million) with SEK 40 million (US $4.4 million) of growth capital injected (to support further expansion) into the business, giving Happy Socks an enterprise value of SEK 765 million (US $ 85.4 million). The amount is 4.7 times the amount that previous owner, Scope, invested in the company in the year 2015.
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“In the last two years Happy Socks has grown beyond our expectations,” said Happy Socks Co-Founder Mikael Söderlindh adding, “We have transformed the company into a real growth engine by strengthening our operational platform and our global presence. We have achieved the best of both worlds by securing a strong new partner in Palamon and remaining significant owners in a great business that we will continue to build in the years to come.”
Happy Socks founders shall remain actively involved in the company following the transaction. Founded in 2008 in Sweden, the company’s mission is to spread happiness by turning an everyday essential into a colourful design piece with a high standard of quality, craftsmanship and creativity.
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Happy Socks have sold its products in more than 90 countries through more than 10,000 points-of-sale and own retail stores that generated retail sales of €100 million in 2016 for the company.
