Sonae has completed the sale of the fashion brands MO and Zippy to a consortium formed by Francisco Pimentel, the current CEO of MO, and the Mercúrio Fund, managed by Oxy Capital.

The operation, announced in May and now formally communicated to the Securities Market Commission (CMVM), represents the complete divestment of the Sonae Group from its two fashion brands, both created internally – MO in 1995 and Zippy in 2004.

Transaction of 20 million, with a negative accounting impact.

The amount involved is around 20 million euros, although Sonae notes that the sale of the companies resulted in a statutory accounting loss of approximately 24 million euros. This loss, the group emphasizes, has no direct monetary impact, but rather falls within the context of the accounting recognition of impairments.

The sale was carried out by Fashion Division, SA, a company within the Sonae group, and includes the companies Modalfa – Comércio e Serviços, SA (MO) and Zippy – Comércio e Distribuição, SA, as well as their respective subsidiaries.

The operation reinforces Sonae's strategy of actively managing its portfolio, aiming to create long-term value for shareholders while simultaneously ensuring the viability and independent growth of the divested brands.

MO, focused on affordable and family-friendly clothing, currently has over 120 stores in Portugal, while Zippy, specializing in children's fashion, is present in more than 40 countries through its own stores and franchises.

According to Sonae, both brands will continue under the leadership of their respective management teams, with Francisco Pimentel remaining as CEO of MO. The completion of the transaction was initially conditional on approval from the Competition Authority, which has now been obtained.

MBO with institutional reinforcement

This operation constitutes a classic MBO – Management Buy-Out, where the leadership of the brands themselves assumes shareholder control, in this case with the institutional support of the Mercúrio Fund, managed by Oxy Capital. Legal advice for the transaction involved firms such as Morais Leitão and PLMJ, on the buyer's side.