Hamashbir Group announced that it is deepening its strategic partnership with New York-based fashion brand Kenneth Cole Productions. Under a newly signed investment and shareholders' agreement, Kenneth Cole will invest up to $5 million in Hamashbir’s subsidiary, Cole Design and Development, to accelerate the brand's international footprint.
The terms of the deal stipulate an initial $3 million equity investment in return for a 20% stake in Kenneth Cole Design on a fully diluted basis. Additionally, Kenneth Cole will provide up to $2 million in collateral to secure a bank credit line dedicated to supporting global operations.
This investment marks a major milestone in the ongoing collaboration between the two companies. Designed to fund expansion into Europe - with a primary focus on Germany - the deal underscores the continued success of the sportswear and watch manufacturer.
To support the European push, Hamashbir has already established offices and a dedicated showroom in Dusseldorf, Germany, to manage continental distribution, alongside a new logistics hub in the Netherlands.
"After three years of developing the brand's activity in Israel, we are moving to the next stage of expanding operations into Europe.. We established offices and a showroom in Dusseldorf, Germany, which will serve us in working with franchisees and department stores in Europe to distribute the brand across the continent. Simultaneously, we set up a logistical framework in the Netherlands to support activities throughout the continent. The brand operates across nine categories, and we view it as a strategic growth engine for Hamashbir Group," said Rami Shavit, CEO and controlling shareholder of Hamashbir Group.