Rietumu Bank and the international group of companies European Lingerie Group (ELG) have prepared and concluded a transaction on financing the group’s business. The total amount of financing granted by Rietumu Bank is 27 million euros.
European Lingerie Group is a fully vertically integrated group of companies active in the production and sale of lingerie. The group’s manufacturing companies operate in the Baltics, Hungary and Germany, but its products are represented in retail in 46 countries around the world, as well as on online platforms.
ELG was engaged in the production of fabrics for underwear under the Lauma Fabrics brand, which are supplied to leading factories both in Europe and in other regions of the world. The ELG Group is also involved in the design, production and sale of premium lingerie, including brands such as Felina, Conturelle and Senselle, and is the owner of Dessus-Dessous, France’s largest online platform for the sale of high-quality lingerie and swimwear. ELG also produces Lauma Medical medical textiles.
As a result of the transaction, Rietumu Bank provided the European Lingerie Group with the necessary resources to stabilize the group’s financial position during the Covid-19 pandemic period, as well as became the owner of 30% of the group’s capital.
Artūrs Jukšs, Head of the Credit Department of Rietumu Bank, says: “This is not a standard transaction for our country’s financial market – and not so much because of the volume as it is in essence. The bank not only provided its customers with credit, which is especially needed in a pandemic and general arcade situation, but also became a partner that has a direct interest in the company’s success and progress. The particular complexity of this international transaction is also noteworthy. Leading law firms and consultants in the Baltic States, Germany, Sweden and Hungary worked on structuring and concluding it. Of course, this is by no means the first international transaction for our bank, but, in my experience, one of the most difficult and interesting. ”
Indrek Rahumaa, the largest shareholder and board member of the European Lingerie Group, emphasizes: “We wanted to attract a partner who, like us, would be interested in business success and growth, new markets, setting and realizing ambitious goals, implementing promising plans and creative business ideas. . At Rietumu Bank, we found like-minded people who fully appreciated our potential and provided the necessary financing both in the form of a loan and by becoming a co-owner of the group. I am confident that this transaction will allow us to survive the difficult times and focus on further business development in the near future. “
ELG’s head office is in Latvia, but production facilities are located in Latvia, Germany, Hungary and other countries. In Latvia, the group owns the Liepaja company Lauma Fabrics, which is one of the ten largest production companies in the world – its production capacity in areas under one roof is more than 100 thousand square meters. In total, ELG companies in different countries employ more than 1,000 people. The group’s main business markets are the Baltic States, Germany, France, Russia, Poland, the Benelux countries, Spain, Italy, Ukraine and other countries around the world.
Rietumu Bank
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