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Lion Capital acquires DMC Group

Lion Capital acquires DMC Group: Image 1 Lion Capital has acquired The DMC Group from BlueGem Capital Partners. The needlecraft group comprises a portfolio of leading European brands including DMC, Wool and the Gang (WATG) and Sirdar, as well as Tilsatec, a high-performance technical yarn.

BlueGem formed The DMC Group in August 2016 as a consolidation platform for its needlecraft brands, beginning with the acquisition of DMC and WATG. BlueGem identified DMC as an unloved and undermanaged company with strong brand heritage, high-quality products and untapped growth potential, and launched a programme of intensive rejuvenation across the entire portfolio. In 2018, the company generated over €90 million of sales across more than 100 countries.

“We are proud of the rapid and significant business improvements that have been achieved at The GMC Group, where we partnered with a high calibre management team,” says Marco Capello, founder and managing partner of BlueGem. “Thanks to the team's work, The DMC Group is now the undisputed market leader in an attractive and resilient niche. There remains substantial potential for growth within the company, and we are happy to hand it over to Lion Capital. Thanks to its unparalleled industry contacts and expertise, we believe Lion will successfully add to the business's strong existing foundations.”

“We have followed The DMC Group closely for some time and admire the value creation strategy that the team has implemented under BlueGem's ownership,” adds James Cocker, partner at Lion Capital. “The business has a wide array of levers to drive continued operational improvement over an extended period, and substantial opportunity for further acquisition-led growth on a global basis. Our proven track record of working with leading global brands makes The DMC Group a perfect fit with our investment strategy, and we look forward to working with the team to help us continue to grow and optimise our portfolio of iconic needlecraft and technical yarn brands.”

Go to www.lioncapital.com for details of DMC and its brands.