Benetton Group has signed a preliminary binding agreement for the divestiture of its Rollerblade business to Prime Newco, a company of the Tecnica Group, and recent acquirer of the Nordica business.
The agreement is part of Benettons strategy aiming at focusing its activities on its core clothing business. In line with this strategy, Benetton Group is also considering acquisition options for its Prince brand.
The consideration for the sole Rollerblade brand will be Euro 20 million, payable at closing, expected to take place on May 31st, 2003. At closing, Benetton will also transfer other elements pertaining to Rollerblade that will be subject to a separate evaluation, as well as the whole stake owned in Benetton Sportsystem Schweiz.
Benetton will also receive, in return for the divestiture of Rollerblades know-how, 1.5% of the revenues generated by the Rollerblade business for the next 5 years, for a total consideration that will be, at least, Euro 5 million.
