Morais Leitão advises Sonae Group on the sale of MO and Zippy to the current management team

Morais Leitão advised the Sonae Group, through Fashion Division, S.A., on the sale, in a management buy-out context, of all shares representing the entire share capital and voting rights of Modalfa – Comércio e Serviços, S.A. (“MO”) and Zippy – Comércio e Distribuição, S.A. (“Zippy”), including the latter’s subsidiaries, to a consortium comprised of Francisco Sousa Pimentel, current CEO of MO, and Fundo Mercúrio – Fundo de Capital de Risco Fechado, managed by Oxy Capital. Following the transaction, and in line with the nature of a management buy-out, the existing management team will remain in place, demonstrating its commitment to the business. The total consideration for Sonae Group for the transaction amounts to ca. €20 million.

Completion of the transaction, expected to occur by the end of the first half of 2025, is subject to the satisfaction of certain conditions precedent and compliance with customary legal requirements, including merger control clearance.

MO and Zippy are fashion brands founded within the Sonae Group, with strong development trajectories since 1995 and 2004, respectively. Today, they hold leading positions in their segments in Portugal and have a significant international presence.

MO is a specialist retailer of fashion and accessories for the whole family, operating over 120 fashion stores in Portugal, and also runs a business unit dedicated to managing the textile category for leading international retailers. Zippy focuses on the children's segment and is present in more than 40 countries through a multichannel strategy that includes both own stores and franchising.

The multidisciplinary team at Morais Leitão advising on the transaction was led by partner Fábio Castro Russo and senior associate Clara Almeida, with Jorge Simões Cortez (corporate and commercial), Maria Soares do Lago, Pedro Gorjão Henriques and Carolina Soares de Sousa (banking and finance), Joaquim Vieira Peres and Gonçalo Rosas (competition) and Catarina Carvalho Oliveira (employment) having also been involved.