London-based private equity firm Palamon Capital Partners has acquired a majority stake in Swedish socks and underwear brand Happy Socks. The company bought out Happy Socks’ previous majority owner Scope for SEK 725 million (ca. €76.3 million). The amount is 4.7 times the amount that Scope invested in the company way back in 2015.
Additionally, Palamon invested SEK 40 million of growth capital in the brand to support its continued expansion. Happy Socks founders Mikael Söderlindh and Viktor Tell shall remain actively involved in the company following the transaction.
Söderlindh and Tell founded Happy Socks in 2008 and disrupted the global sock wear market by offering attractively priced colourfully patterned socks in a fashion context and promoting celebrity collaboration and a strong social media presence. Happy Socks are today sold in more than 90 countries through more than 10,000 points-of-sale and own retail stores, generating retail sales of €100 million in 2016.
In the last two years Happy Socks has grown beyond the company’s expectations. This has transformed the company into a real growth engine by strengthening our operational platform and our global presence. The company is of the feeling that it has achieved the best of both worlds by securing a strong new partner in Palamon and remaining significant owners in a great business that we will continue to build in the years to come.