LPP begins a wave acquisitions with Artman merger

The deal will create a company with 2007 revenues of zł.1.5 billion. It comes less than two years after another spectacular M&A deal in the sector, in which Vistula merged with Wolczanka. LPP said more deals are in the pipeline. "We are in talks with several Polish and foreign firms and one or more M&A transactions could be completed before the end of the year," said Dariusz Pachla, LPP vice president. Although he declined to give any details, one of the targets reportedly is Silvano Fashion Group, the Estonian retailer of women's clothes and lingerie that has a dual listing in Tallinn and in Warsaw. Expansion in the CEE region is at the heart of LPP's strategy. It wants to derive 50% of revenues from foreign markets within five years. LPP has a network of 320 retail outlets under brands Reserved, Cropp and Esotiq, including more than 100 in foreign markets such as Russia, Czech Republic, Hungary, Ukraine and the Baltics. Artman, which specializes in teen wear, has 198 outlets, including 77 in foreign markets, under the House brand. Shares in Artman jumped by 32.1% on the news. LPP closed 3.9% up. (Puls Biznesu, p. 8, 9; Rzeczpospolita, p. B5) R.M.