PAS sells brand to General Pants Group

Metalicus_6The PAS Group Limited has today confirmed the divestment of its Metalicus brand to the General Pants Group.

The apparel group said the sale will positively impact its EBITDA expectations in FY2017 and allow the retailer to concentrate on “core and new growth businesses while freeing up working capital.”

“The divestment of Metalicus is a positive outcome for the company,” said Eric Morris, CEO of PAS Group. “Metalicus has been a long standing, valued brand within our portfolio; however its performance has been challenged in recent times.”

PAS said despite Metalicus sales in FY2016 reaching c.$25million, the brands profitability had been disappointing. The deal is expected to be concluded by September of this year.

“We have long been admirers of the Metalicus brand throughout its evolution,” said Craig King, CEO of General Pants. “We are excited to acquire the brand and build on its strong heritage for today’s consumer.”

The transaction is by way of a selling of assets and not expected to impact on PAS’s balance sheet, with the assets previously written down.

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