BasicNet Group, the Italian owner of Kappa, K-Way, Superga and Sebago, has acquired a 61% stake in one of Kappa’s European licensees, Sport Finance.
Sport Finance is the holding company for Kappa licensees in the UK, Ireland, France, Switzerland, Spain and Portugal. Its Manchester office markets the Kappa and British Basketball League brands in the UK and Ireland.
The deal was completed through BasicNet Group’s Italian licensee BasicItalia. The agreement allows BasicItalia to acquire the remaining 39% of the French company at a later date, depending on its performance.
Sport Finance will be renamed Kappa Europe, and will continue to be headquartered in Saint-Herblain, near Nantes.
The merger is expected to boost Kappa’s growth in Europe and help it adapt to new models of digital distribution. Kappa aims to double its turnover in Europe within the next five years.
Mark Ward, UK managing director of Sport Finance, said: “The acquisition of Sport Finance by BasicNet Group is brilliant for Kappa’s development in Europe and is a result of how successful the brand has become across Europe and globally.
“Demand is high for the brand and we expect the creation of Kappa Europe with one centralised team working strategically across design, marketing and sales to elevate Kappa to further success in a competitive market.”
Sport Finance had a consolidated turnover of €75m (£66m) in 2018, of which €66m (£58m) came from Kappa.