The Monnari Trade subsidiary signed a document on Wednesday regarding the initial conditions for the purchase of the Top Secret brand. The contracts are to be concluded by September 8, 2023, according to the communiqué.
Monnari Trade sells clothing and accessories under the Monnari brand. As we read on the company’s website, Monnari has 167 stores throughout Poland. In turn, Top Secret stores “are located in over 130 locations across the country.”
Monnari wants to take over Top Secret
On Wednesday, Monna Nice, a subsidiary of Monnari Trade, signed a document in which the terms and conditions of the transaction for the purchase of assets used to operate under the Top Secret brand, i.e. collection design, purchase and retail and wholesale, as well as running and managing stores and marketing “, we read in the message. The sellers are Redan and Sonasino, with whom the document was signed.
The planned transaction provides for the acquisition by Monna Nice of the protection rights to the Top Secret and DryWash trademarks for the amount of PLN 8 million. In addition, as agreed, Monna Nice will pay Redan half of the EBITDA (operating profit before deduction of interest on liabilities) generated by the Top Secret brand business in the second and third full year after the transaction.
Monna Nice is also to acquire 100 percent. shares in Top Secret Fashion Story. It is a company that conducts retail sales in Poland through Top Secret stores and the topsecret.pl online store. In addition, Monna Nice is to acquire 100 percent of shares in Fashion Ideas and shares in 17 shop companies. Shares in the companies are to be sold for approximately PLN 1 million. zloty.
The completion of the transaction is subject to the fulfillment of several conditions precedent, including: obtaining the consent of the Office of Competition and Consumer Protection.
If the transaction is concluded, Redan will be able to conduct a sale of goods owned by Redan through Top Secret and topsecret.pl e-commerce stores run by Top Secret Fashion Story, as well as wholesale. The parties also agreed that after the transaction, Redan will provide logistics services for the Top Secret business and will take over the logistics services for Monnari’s e-commerce brand.
Redan wants to allocate the proceeds from the transaction to repay the loans and buy back the issued bonds.
The parties agreed that by September 8, 2023 they will conclude: a preliminary or conditional agreement for the sale of shares in Top Secret Fashion Story; a preliminary or conditional agreement for the sale of trademarks and agreements for logistics services.
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