The BasicNet Group (Group), owner of the Kappa, Robe di Kappa, K-Way, Superga, Sebago and Briko brands, has reached an agreement for the acquisition of the Woolrich brand, from L-Gam, an investment fund founded in 2013 with the support of the Royal Family of Liechtenstein and families from Europe, Asia and the United States.

Founded in 1830 by John Rich in Pennsylvania, Woolrich is one of America’s oldest manufacturers of wool fabrics and outdoor clothing. The company was founded to provide durable and functional garments to hunters, loggers, and railroad workers, protecting them from the harsh winters of the Northeast United States. In 1850, Woolrich introduced the famous Buffalo Check pattern, the unmistakable red and black check that became an icon of rustic and authentic style. In 1970, in response to the needs of workers building oil pipelines in Alaska, the Arctic Parka was born, designed to withstand extreme temperatures and destined to become an iconic winter garment worldwide.

“We are thrilled to welcome Woolrich to the BasicNet family, offered Lorenzo Boglione and Alessandro Boglione, co-CEOs of BasicNet. “Woolrich is an extraordinary brand, with a history and identity that make it unique in the international outerwear scene. It embodies precisely the authentic cultural heritage we wish to preserve, enhance, and revitalize. This move is perfectly aligned with our long-term vision, based on dynamic and responsible brand management.”

They continued, “The acquisition comes in a challenging economic environment, but we are confident that the strength of our model and the experience of our team will allow us to bring the brand back to growth.”

Woolrich is expected to benefit from the proven BasicNet business model, which is said to combine industrial know-how, distribution strength and brand building capabilities, with the aim of relaunching the brand on the European and global markets, in synergy with Baoxiniao, owner of the brand in the rest of the world.

Woolrich’s key markets – particularly Italy and Europe – reportedly align with those in which BasicNet has built a solid presence, creating the ideal conditions for the brand’s relaunch.

The operation involves the acquisition through a company wholly owned by BasicNet, of the rights to the Woolrich brand for Europe and of 100 percent of Woolrich Europe SpA, the company that handles its distribution and retail. Revenues for the 2025 financial year are forecast be ~€90 million and total Enterprise Value is set at €90 million.

The consideration, equal to €40 million, will be paid as follows:

  • €12 million through the transfer of 1,200,000 ordinary BasicNet shares at a value of €10 each;
  • and the remaining €28 million in cash, primarily intended for the liquidation of the assets excluded from the scope of the transaction.

In addition, the selling party may receive a variable deferred compensation upon reaching certain levels of results and turnover at the end of the three-year period 2026-2028.

The transfer of the shares paid to the counterparty as part of the initial consideration will be tied to a period of 24 months from the date of execution of the acquisition.

“With a view to optimizing the Group’s financial structure, the acquisition and refinancing of existing debt will be structured, despite the presence of available liquidity, through the use of medium- to long-term credit lines and a revolving credit facility for a maximum of €90 million,” the BasicNet said in its acquisition release. The new financing will be provided by Unicredit, as the Group’s strategic partner and sole lender for the transaction.

The transaction is not subject to any conditions precedent and is expected to be completed by December 2025.

As part of the transaction, BasicNet said it relied on Studio Legale Pavesio, under the supervision of partner Carlo Peyron, for contractual and legal due diligence aspects, and EY for tax and financial due diligence.

L-GAM was advised by Houlihan Lokey on the financial aspects, André Pichler, Labruna & Associati (LMS) with partner Fabio Labruna on the legal aspects, Paul, Weiss, Rifkind, Wharton & Garrison LLP on the English and U.S. law matters, and EY on the tax and financial aspects of the transaction.

Image courtesy Woolrich Berlin