Destination Maternity to Merge With French Retailer
Destination Maternity announced plans on Tuesday to merge with French company Orchestra Prémaman S.A. The merger will create a global provider of maternity apparel, children's wear and baby goods, with revenues of more than $1.1 billion. If the merger goes through, the group will operate under the Orchestra name and maintain its corporate headquarters in Montpellier, France. Destination Maternity will stay in Moorestown, N.J.
Total Retail's Take: This is a smart move on Destination Maternity's part. With saturation in the current market for maternity apparel, the merger will help expand its digital and physical footprint as well as its product line to reach a greater audience. Reports mentioned the deal will also help Destination Maternity to save $15 million to $20 million, as well as give Orchestra access to a U.S. distribution platform.