- Danielle Wightman-Stone |
BlueGem Capital Partners has sold The DMC Group, which comprises of leading European needlecraft brands, including DMC, Wool and the Gang and Sirdar, to Lion Capital LLP.
BlueGem formed The DMC Group in August 2016 as a consolidation platform for complementary needlecraft brands, following the acquisition of DMC and Wool and the Gang. This then led to acquisition of hand knitting yarns Sirdar in 2017, and the opening of a London head office, which the private equity firm states “solidified the groups position as the European leader in the needlecrafts space”. The portfolio also includes Tilsatec, a leading brand of high-performance technical yarn.
In 2018, The DMC Group generated over 90 million euros of sales across more than 100 countries.
Marco Capello, founder and managing partner of BlueGem, said in a statement: “We are proud of the rapid and significant business improvements that have been achieved at The DMC Group, where we partnered with a high calibre management team.
“Thanks to the team’s work, The DMC Group is now the undisputed market leader in an attractive and resilient niche. There remains substantial potential for growth within the company, and we are happy to hand it over to Lion Capital. Thanks to its unparalleled industry contacts and expertise, we believe Lion will successfully add to the business’s strong existing foundations.”
James Cocker, partner of Lion Capital, added: “We have followed The DMC Group closely for some time and admire the value creation strategy that the team has implemented under BlueGem’s ownership. The business has a wide array of levers to drive continued operational improvement over an extended period, and substantial opportunity for further acquisition-led growth on a global basis.
“Our proven track record of working with leading global brands makes The DMC Group a perfect fit with our investment strategy, and we look forward to working with the team to help capitalise on the business’s tremendous potential.”