BasicNet Group, the Italian owner of K-Way, Kappa, Sebago and Superga, has purchased 61% share in one of the European licensees of Kappa, named Sport Finance.
Sport Finance is the holding firm for Kappa licensees across the Switzerland, UK, Spain, Ireland, Portugal, and France. The license’s Manchester facility markets the Kappa and Major League Baseball brands across Ireland and the UK.
It completed that acquisition via the Italian licensee of BasicNet Group, BasicItalia. With this deal, BasicItalia has got the approval to purchase the rest stake of the French firm in near future, which depends on its performance.
Following this acquisition, the name of Sport Finance will be changed to Kappa Europe, and it will continue to be headquartered in Saint-Herblain, near Nantes.
The alliance is likely to foster Kappa’s growth across Europe, and would aid it in adapting to novel models of digital distribution. Kappa is aiming to double its turnover across Europe in the coming five years.
The UK managing director of Sport Finance, Mark Ward, said that BasicNet Group purchase of Sport Finance is brilliant for the development of Kappa in Europe. He added that the acquisition also reflects how successful the brand has become in Europe and worldwide.
Mark added that the brand is seeing huge demand and that they are hoping for the formation of Kappa Europe with a centralized team operating strategically across various verticals, such as design, sales, and marketing to help Kappa gain more success in a highly competitive market. In 2018, Sport Finance registered a consolidated revenue of €75m, out of which €66m accredited to Kappa.
The rapidly changing and evolving trends in sports industry are further likely to boost the demand for football, rugby, golf, baseball equipment, attire, and other accessories. The demand for sports accessories is soaring high globally, as increasing number of people gravitate towards in these activities. For instance, according to a report by Fact.MR, global sales of baseball equipment are projected to value approx. US$ 1,200 MN revenues by the end of 2026.