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With the acquisition, European Lingerie Group aims to secure its business in the Russian market, enhancing sales and services to customers in Russia.

Avangard distributes in Russia medical textiles by Lauma Medical and lingerie materials by Lauma Fabrics, which both are companies of the European Lingerie Group. The cooperation with Avangard was established in 2012. During these years, the company has generated healthy profits on a stable turnover.

"We see this acquisition as a good platform for future growth in Russia and CIS. The Russian market is important for us and Avangard as our distributor there has an essential role. Our target is to secure and expand our business in Russia," said Peter Partma, CEO of European Lingerie Group.

"Through Avangard, we aim to increase the sales of fabrics to our lingerie customers in Russia and also introduce new medical products. In addition to having a good product it is as important to guarantee delivery on time. Avangard acquisition gives us control over the supply chain, offering stable and centralized logistic services, custom clearance and storage options to our Russian customers," said Diana Suprunovica, Board Member of European Lingerie Group.

"The Russian market is large and for business growth we need to establish closer links for all our products. We plan to actively partake in exhibitions, work with industry experts and wholesalers. Avangard acquisition allows us to better address the needs of the Russian market and grow our business," added Edijs Eglins, General Manager of Lauma Fabrics.

The acquisition of Avangard is financed with internal resources and will have a positive effect on the group's EBITDA for 2018.

Avangard is an exclusive distributor of Lauma Medical products in Russia since 2012, selling goods through regional distributors to pharmacies. According to the market research data provided by DSM Group, Lauma Medical elastic bandage is in the leading position with a market share of some 38 percent in Russia. Avangard has a stable turnover of around EUR 4 million.

European Lingerie Group is a fully vertically integrated intimate apparel and lingerie group which produces lace and fabrics for largest lingerie brands under Lauma Fabrics brand name, medical textiles under Lauma Medical brand name, as well as designs, manufactures and distributes branded premium lingerie garments under Conturelle and Felina brands.

The owners of European Lingerie Group are Indrek Rahumaa and John Bonfield.