SuperGroup to pay £34m for Europe partner

SuperGroup, the company behind the trendy Superdry fashion label, is touting a deal worth up to €40 million (£34m) to buy out its European franchisee as a "game-changer".

The firm yesterday said it was buying its Benelux and France franchise and distribution partner - CNC Collections - from owner Luc Clement.

Chief executive Julian Dunkerton said: "It opens up huge possibilities for us… It transforms our prospects in Europe.

Clement will join SuperGroup, whose clothes are a favourite of celebrities such as Leonardo DiCaprio and Zac Efron, as head of European franchising to spearhead a push into Italy, Spain and Germany. "Luc Clement is delivering spectacular growth," Dunkerton said.

Arden Partners analyst Nick Bubb said: "Before the upgrades on today's move, the shares are trading on less than 25 times the new year (forecast earnings) and SuperGroup still looks cheap on that basis versus Asos."