Investment company buys Oasis

Baugur, the Icelandic investment company said yesterday that it was looking for further acquisitions after paying £152m (€217.53m) for fashion chain Oasis.

It said it was looking for opportunities to expand Oasis which could include buying brands or clothing retailers. Baugur purchased Oasis from the private equity group PPM Ventures.

Since Oasis was taken private the fashion chain increased sales by 23% to £164m (€234.7m) in the two years to January 31, 2003.

Operating profits during the time almost doubled from £8.6m (€12.3m) to £15.6m (€22.32m).

The deal will generate a substantial windfall for Oasis's chief executive, Derek Lovelock, and the other nine members of the buyout, who will receive £32m (€45.79m) from Baugur for their 12.75% stake in the company.

The management team, who have been responsible for the positive turnaround in the company's fortunes, will be retained by Baugur and will plough half of their £32m (€45.79m) back into the business.