'Elle·PAT' Doknipmun, Again Up for M&A Sale

Doklipmun, which operates multiple fashion brands such as 'PAT', 'Elle Golf', and 'Elle Sports', has been put up for sale in the merger and acquisition (M&A) market. Doklipmun had previously been listed for sale in 2018 and 2021 but withdrew its intention to sell.

According to the investment banking (IB) industry on the 25th, the entire stake held by major shareholders is up for sale. Doklipmun's largest shareholder is Cove Investment, a Canadian investment company owned by Kim Scott Lee Seok, the eldest son of former CEO Kim Hyung-seop, holding 47.1% of the shares. Following that, PAL Partners, a Singaporean investment company owned by former CEO Kim Hyung-seop, holds 26.1% of the shares as the second-largest shareholder.

Doklipmun's sales declined over several years due to intensified competition in the adult casual market and the impact of the COVID-19 pandemic. However, since 2021, sales and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) have been on a recovery trend due to price discount policies and the easing of COVID-19. As of 2022, sales amounted to 125.4 billion KRW, and EBITDA was 4 billion KRW.

From an investment perspective, attention should also be paid to the value of owned real estate, including the Anseong logistics center. The Anseong logistics center has a geographical advantage as it is adjacent to the Jungbu Expressway. Doklipmun owns real estate worth approximately 34 billion KRW, including this logistics center.

An IB industry insider explained, "Based on long-standing experience and know-how, Doklipmun has established an optimized procurement and sales system, enabling stable management of material procurement, product inventory, and sales networks with a solid business model." They added, "As a long-established fashion brand, it has secured a thick customer base mainly in their 50s and 60s, and 47% of the total customers are repeat buyers, showing high loyalty."

Founded in 1947 as Daeseong Textile Industry, the fashion company Doklipmun has a 75-year history this year. Independence activist and founder Chairman Kim Hang-bok started from knitwear and expanded the business by launching the PAT private brand. Doklipmun sold the NEPA brand in 2012 and even sold its office building in 2019.

This content was produced with the assistance of AI translation services.