What's Happening?
Spanish textile multinational Nextil has sold all its production facilities in northern Portugal for €4.4 million under a sale and leaseback agreement. This transaction allows Nextil to continue operations at the same sites as a tenant, ensuring continuity and stability in its industrial operations. The facilities, located in Braga and Viana do Castelo, were sold through subsidiaries Sici 93 and Playvest, which specialize in fashion garments, swimwear, luxury textiles, and sports fabrics. A 25-year lease agreement has been signed with the new property owner. This move is part of Nextil's 2024-2026 Strategic Plan aimed at consolidating profitability, sustainability, and long-term growth.
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Why It's Important?
The sale and leaseback transaction is a strategic move by Nextil to optimize its business model and support its acquisition strategy. By raising €4.4 million, Nextil plans to reinvest the proceeds to strengthen its position in the premium and luxury fashion segment, reinforcing its role as a strategic supplier to high-end European brands. The transaction is expected to generate an accounting profit of approximately €2 million, which will be used to cancel mortgage debt and support future acquisitions. This aligns with Nextil's inorganic growth strategy, which focuses on expansion through acquisitions rather than internal development.
What's Next?
Nextil plans to use the proceeds from the sale to support its acquisition strategy, particularly in the luxury fashion segment. The company announced its intent to acquire a Portuguese company specializing in luxury textiles, which is expected to scale up operations within its luxury garments division. This division, anchored by Sici 93, reported revenues of €21.4 million in 2024 and is projected to reach €30 million by 2026. The acquisition is expected to further enhance Nextil's growth potential and strengthen its market position.
