European investment firm Palamon Capital Partners is taking stock in socks.
Palamon announced Monday it has acquired a majority stake in Swedish hosiery brand Happy Socks for 725 million Swedish Krona, or $81.2 million. The firm intends to inject an additional $4.5 million to support expansion.
Happy Socks burst onto the fashion sock scene in 2008 with its lively patterns, colors and giftable packaging. With more than 10,000 points of sale, including their own brand stores, and quirky collaborations with celebrities like “geriatric” starlet Iris Apfel, the brand has achieved more than 50 percent revenue and EBITDA annual growth over the last three year.
“In the last two years Happy Socks has grown beyond our expectations,” said Happy Socks Co-Founder Mikael Söderlindh. “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.”
Palamon has a history of identifying brands known for authenticity and high quality. The firm’s previous investments in the specialty retail sector include leather goods brand Il Bisonte, Rug Company and Feelunique.com, a UK online beauty products online retailer.
“Happy Socks is a phenomenal company with a very distinctive brand DNA that resonates with consumers around the world. Palamon’s investment stems from the Firm’s ongoing effort to identify well-positioned European specialty retail brands with strong growth potential in a global market,” Ali Rahmatollahi, partner of Palamon Capital Partners, said in a statement.