Sonae Sells MO and Zippy in Management Buy-Out
Deal News | May 27, 2025 | Iberian Lawyer
In a significant move, Sonae, a prominent Portuguese group, has agreed to sell its fashion brands MO and Zippy to a management-led consortium. This transaction is structured as a management buy-out, involving current MO CEO Francisco Sousa Pimentel and the Mercurio Fund, managed by Oxy Capital. The deal is structured to ensure the current management team continues operations, and is expected to yield approximately 20 million euros for Sonae. Completion is anticipated by mid-2025, subject to regulatory approvals including those from the Competition Authority. MO and Zippy have been instrumental brands for Sonae, with MO being a family fashion and accessories retailer with a significant presence in Portugal, and Zippy focusing on children's fashion, operating internationally. Legal advice was provided by Morais Leitão, involving a multi-disciplinary team led by Fábio Castro Russo and Clara Almeida, covering corporate, banking, and competition law aspects.
Sectors
- Fashion Retail
- Private Equity
- Legal Advisory
Geography
- Portugal – Sonae, MO, and Zippy are based in Portugal, which is central to the transaction.
- International – Zippy has a significant international presence, being present in over 40 countries.
Industry
- Fashion Retail – The article primarily involves the sale of fashion brands MO and Zippy, which operate within the fashion retail sector.
- Private Equity – The transaction involves the involvement of the Mercurio Fund, managed by private equity firm Oxy Capital.
- Legal Advisory – Legal advisory services were provided by Morais Leitão, highlighting the role of the legal industry in the transaction.
Financials
- €20 million – The proceeds expected from the sale of MO and Zippy.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Sonae | Selling Company | Company | A Portuguese group that owns the fashion brands MO and Zippy. |
| Francisco Sousa Pimentel | CEO of MO, Buyer | Person | The current CEO of MO, leading the management buy-out. |
| Mercurio Fund | Buyer | Company | A fund managed by Oxy Capital, involves in the buy-out. |
| Oxy Capital | Private Equity Firm | Company | A private equity firm managing the Mercurio Fund, involved in the acquisition. |
| Morais Leitão | Legal Advisor | Company | A law firm providing legal advice for the transaction. |