Happy times for Happy Sock people!

Today has seen the announcement that Palamon Capital Partners have taken a majority shareholding in Swedish sock maker Happy Socks. This deal represents a “happy” and speedy exit for Scope Capital, who took an undisclosed minority stake precisely two years and one day ago on the 15th January 2015, and according to their press release have managed to walk away with a “4.7x money multiple on the original investment”.

The Happy Sock company was started in 2008 and its bright and colourful socks and expanded range of underwear are now retailed in over 90 countries. Revenues for 2015 were just under EUR 21.5m, representing a 140 per cent increase on 2014, and with net profits of just under EUR 3m. This is evidence that the company’s statement that there is “a pair of high-quality socks and underwear for every occasion, mind-set and style” is being embraced further afield than local Scandinavian markets, where innovative fashion statements are well received.

I have to admit that I too have recently been drawn in to the world of Happy Socks. Having previously been a purchaser of more, shall we say, orthodox single-coloured socks, I was bought a pair of the multi-coloured socks as a gift and I was pleasantly surprised by the quality and versatility of the product. Happy shoppers equals growth, equalling happy investors!