French embroidery thread producer DMC will be soon the property of British investment fund Blue Gem Capital Partners.

Although the price of the remains undisclosed. Union source, the amount could be between 35 and 40 million euros.

Both the staff and French regulators have expressed their concerns about such a high price fetched, pointing out to a “frantic quest for profitability”. The increasing use of foreign outsourcing is part of the worries expressed by the current 215 employees.

As reported by local media, on the side of management, no formal communication has yet taken place, although it is expected for any time this week. The current CEO, Dominique Poile, will remain with the company holding the same responsibilities at the helm of the business.

DMC to remain a French company under new owners

The new owners assured their intention to reinforce the staff of DMC, keeping them "very targeted" - especially commercially.

As Poile explained in an interview with Reuters, the sale’s outcome will be a French company that will be created before the summer break.

The Alsatian company registered a turnover of 57 million in 2015. Now, BlueGem, with more than 550 million euros under management, "would make DMC a leading player in the creative leisure industry", said in a statement DMC, who claims to hold 60 percent of the world embroidery thread market.

DMC generates 30 percent of its turnover with entry level products purchased abroad and 61 percent with embroidery thread manufactured in Mulhouse (Haut-Rhin), highlights ‘L’Alsace’.

The future buyer plans to develop the company both by organic growth while rejuvenating the brand and extending its range of accessories, and acquisitions in the areas of knitting and crochet.

"At our core products, we are strong in France and as soon as you add volumes, you increase profitability," argued Dominique Poile.

The company was taken over in 2008 after a bankruptcy filing by Bernard Krief Consultants, which holds 38.14 percent stake, with the remainder split between two Alsatian investors and members of management.

Dollfus-Mieg et Cie (DMC) was born in Mulhouse in 1746. First of Indian manufacture, painted or printed fabrics, the group then diversified, using to have up to 16,000 employees in the 1970s before begin a slow decline.

Image:www.dmc-usa.com