Scope Growth III L.P. has agreed to sell its ownership in Happy Socks to Palamon Capital Partners, realising 4.7 times its investment cost.
Happy Socks sells colourful socks and underwear with a distinct ‘Happy’ brand DNA, in a unique combination of on-line and off-line channels. Scope partnered with the founders of Happy Socks in 2015 to make the business model and organisation robust and truly scalable to capture the brand’s growth potential. The organisation has responded better than expected with 140% revenue growth with maintained profit margins as a testament. The next step will be deeper market penetration and there are a number of strategic choices to be made that will have large impact on the direction of the company and where the brand will benefit from additional muscle.
Headquartered in Stockholm, Happy Socks is present in over 90 markets with over 10.000 points of sales. In 2016 Happy Socks products were sold at a retail value in excess of SEK 1.1 billion.
“When Scope invested in Happy Socks the focus was on making the business model robust and truly scalable, and the organisation has responded better than expected to the measures taken. The next step will require a number of strategic choices to be made that will have a major impact on the direction of the company and we see that the brand can benefit from additional muscle. We have really enjoyed working with the Happy Team and look forward to follow the journey as Happy Customers” says Fredrik Oweson, Partner at Scope Capital Advisory SA.
“The last two years together with Scope we successfully accelerated the growth and development of Happy Socks beyond expectations. We have built a super team and transformed the company into a real engine by strengthening our global presence and how we work and successfully increased our market communication to drive demand globally. I am really proud of what we have accomplished together and how it has made it possible for Happy Socks to take this next step, “ says Mikael Söderlindh, Co-Founder of Happy Socks.
Fredrik Oweson, Partner, Scope Capital Advisory SA, phone +41 79 628 32 71
Mikael Söderlindh, Co-Founder Happy Socks, phone +46 (0) 70 471 03 50
Scope invests in Nordic growth opportunities; partnering with organisations with a proven value added and a defined competitive advantage to create sustainable, growing companies. Scope Capital Advisory AB and Scope Capital Advisory SA are advisors to the Jersey based funds Scope Growth II L.P. and Scope Growth III L.P.