In the fashion industry, more acquisitions the way

The macroeconomic scenario in the country has favored the mergers and acquisitions in the sector, which was affected by the drop in sales and the consequent difficulty in making box or get resource with banks for payment of debts. According to a survey by KPMG, the first quarter occurred five mergers and acquisitions with fashion companies in Brazil, compared to a transaction in the same range of 2015.
Between operations are buying the brand of shoes and handbags Shoestock by Netshoes and the acquisition of 52% of Daslu, which belonged to Laep Investments, to a group of investors that includes the Crezo businessman and lawyer, Suerdieck Golden Felício Valarelli Rose Jr. The negotiation of merger between Restoque and Inbrands, announced recently, is not included in the survey.
For Luiz Motta, leading mergers and acquisitions partner of KPMG, the trend for the year is of a larger number of operations in the sector. "The past year has been very difficult for retailers because of the fall in consumption and the increase in interest to finance the business. The junction of operations becomes an option to improve profitability because it generates a reduction of fixed costs and increase negotiating power with suppliers, shopping malls and banks, "said Motta.
The levels of leverage retail listed companies sets varied little over the last five quarters, despite the worsening of other indicators of performance in the industry.
Considering the eight largest companies of apparel and footwear-Renner, Guararapes (Riachuelo), Alpargatas, Marisa, Grendene, Hering, Arezzo & Co and Restoque-, the relationship between net debt and earnings before interest, taxes, depreciation and amortization (Ebitda) stood at 0.5 in the first quarter of the year. This level of leverage is less than the registered both at the end of 2015 and in the first quarter of last year: 0.6.
The prospect, however, is worsening due to the indicator still pessimistic Outlook on the sector. Among the listed companies of fashion retail, the Restoque is the only one with leverage worrisome, with a net debt/Ebitda ratio of 8.6. The company announced that it is negotiating a merger with Inbrands, the resulting company will receive a capitalization of 500 million R$.
Luiz basket, an analyst at Votorantim Corretora, believes that the amalgamation would be problematic to Restoque because the Inbrands has a net debt/Ebitda of 4.6, down from the 3.5 Restoque. The combined operation, this indicator would reach 4, still worrying level of risk of insolvency. The basket also claims that the integration of operations should take more than a year as the merger with Dudalina, rising restructuring costs in the short term.