WP, Woolrich’s European partner, absorbs the U.S. founding group

Woolrich Inc. is merging with its European subsidiary. The resulting company, Woolrich International, will be headquartered in London and materialise two years’ worth of a strategic partnership.

Thus, the U.S. based company, founded in 1830 by John Rich, will be integrated into its European counterpart after two years since the two companies formed a strategic partnership “meant to give the business longevity.”

In June 2014 WP Lavori, the Italian company that holds the license to design, produce and distribute Woolrich in markets including Europe and Japan, signed a long-term agreement with the Woolrich outdoor apparel and wool specialised brand.

“The two families have founded a committee that will be joined by both parts and will handle all strategies for product, distribution, retail, logistics, etc. We are now thinking as if we are part of the same company,” Joshua W. Rich said in a previous report. The first goal shared by both parties is the re-launch of “our woolen fabric manufacturing in Pennsylvania, which is one of the few historical operating mills left in the U.S.”

A member of the founding Ricj family will oversee the Woolrich business in the U.S.

In a corporate release, both companies explained that the Rich family, which has managed the U.S. business since its inception, will retain a minority stake in the new business. Besides, Nicholas Brayton, a member of the seventh generation of the Rich family, is to manage the company’s North American business.

“WP Lavori in Corso is to be the majority shareholder of Woolrich International, while the Rich family will maintain a minority stake. Woolrich International is expected to close 2016 with revenues of 170 million euros, or 180 million dollars at current exchange,” the joint communication further added.

Financial details remain undisclosed while the first details regarding the new management have transcended. WP Lavori in Corso and Woolrich Europe president and chief executive officer Cristina Calori will be named president of Woolrich International. Paolo Corinaldesi is to be its CEO, according to ‘Il Sole 24 Ore’.

Woolrich International to launch an IPO in five years

Looking ahead, the privately held company is planning to go public. “Woolrich International anticipates launching an initial public offering within five years,” the firm said Wednesday.

“Woolrich International will develop a five-year strategy, which is expected to increase the company’s revenues to 266 million euros, or 282 million dollars, by the end of 2020, representing an average annual growth of 12 percent over the next four years. In that time, the total employee count is expected to reach 500.

“We are focused on reinforcing our successful business model to promote the development of the brand all around the world,” said Calori, who highlighted Woolrich and WP Labori’s 32 years of collaboration.

“This agreement represents a new important chapter in the growing path of our iconic American brand, which is on the market since almost two centuries,” highlighted Brayton said. “The new strategy contributes to a further acceleration of our international expansion.”

Woolrich International’s strategic plan includes as well the relaunch of its Woolrich Outdoor line, which is positioned in the premium segment of the outdoor market. For the United States, the key market for this label, Woolrich International will develop a new brand concept that brings the outdoor offering into the urban lifestyle market. It is to be presented to independent retailers and multibrand chains.

“Woolrich’s historic textile factory in Woolrich will be reinforced. Along with our signature blankets, we will develop a bigger range of products crafted from our fabric,” revealed the company, explaining that the mill will continue its production for other firms, especially those labels focused on a Made in America production. “We are going to sign a collaboration agreement with a textile school in Pennsylvania, which will enable us to bring fresh creativity to our factory.”

Photo:Woolrich.com