Arlen wants to take over Czech footwear manufacturer Prabos

Warsaw-based Arlen, a manufacturer of textiles and protective clothing for uniformed services, is planning to acquire a controlling stake in the Czech footwear company Prabos. The potential acquisition involves purchasing shares from Prabos's main shareholder and CEO, whose identity has not been disclosed but is presumed to be Juraj Vozar.

The two companies have a history of collaboration, having previously participated together in tenders for equipping the Polish military. The current plan aims to create a unified capital group, though the transaction is not yet finalized. Arlen has signed a letter of intent outlining the basic terms of the planned investment.

The proposed transaction is structured in two phases. Initially, Arlen aims to acquire a 60% stake in Prabos for 6.4 million euros by September 30, with a possibility of extending this deadline. The second phase involves Arlen acquiring an additional 15.66% of Prabos shares within two years of a written request from the seller, at a price determined by the first stage of the deal.

Prabos is recognized as a leading producer of specialized footwear in Central Europe, manufacturing military, tactical, trekking, and work boots that meet stringent requirements for military and uniformed personnel. The integration of Prabos into the Arlen Group is a key expectation for the investor, and the seller has expressed willingness to continue as CEO of Prabos for at least two years post-acquisition.

The acquisition is contingent upon Arlen completing a limited legal and tax due diligence of Prabos and the successful negotiation of final transaction documents, including a share purchase agreement. Arlen has secured the necessary funds for the acquisition and does not plan to issue new shares.