W.Kruk Acquires Lilou for Over €24M
W.Kruk Acquires Lilou for Over €24M in One of Poland’s Most Notable Fashion Retail M&As
Category: M&A, Retail Tags: M&A, jewelry, retail
VRG Group’s flagship brand W.Kruk to acquire the entire Lilou Group in a transaction worth over €24 million, marking a proud moment in Poland’s luxury and fashion industry and reshaping the personalized jewelry segment in Europe.
In a landmark consolidation move for the Polish fashion and retail landscape, W.Kruk—a 180-year-old jewelry powerhouse and flagship brand under VRG S.A. (Vistula Retail Group)—has announced its intent to acquire the Lilou Group, a beloved Polish jewelry brand known for its personalized, talisman-inspired designs.
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The acquisition deal, announced this week, is valued at PLN 105 million (approx. €24 million) with a further earn-out of up to PLN 30 million (€6.7 million) depending on Lilou’s future performance. The transaction includes Lilou, Bellver MYVOG Family Foundation, Lilou Online Shop, Lilou Retail, and associated logistics units, with W.Kruk and its special purpose vehicle (WK SPV) set to acquire 100% of shares following internal mergers. The transaction is subject to clearance from Poland’s Office of Competition and Consumer Protection (UOKiK) and final documentation approvals.
This acquisition is a strategic leap for VRG S.A., one of Poland’s largest and most diversified fashion retail groups. VRG owns five premium brands across jewelry, menswear, and accessories: W.Kruk, Vistula, Bytom, Deni Cler Milano, and Wólczanka. With over 600 points of sale across Poland and Central Europe, VRG has become a key regional player, blending heritage retail with contemporary business models. The W.Kruk–Lilou acquisition underscores VRG’s ambition to cement its leadership in the growing affordable luxury and lifestyle personalization space.
Lilou, founded by Magdalena Mousson-Lestang, began as a boutique project in 2008, offering handcrafted jewelry engraved with personal messages and symbols. It quickly gained traction with fashion editors and celebrities, becoming a cult favorite among Polish consumers. Its flagship store on Mokotowska Street in Warsaw was followed by expansion into Paris and Cologne, with the brand now operating 46 boutiques (including 45 in Poland, and one each in France and Germany) alongside a growing e-commerce platform.
While the transaction is not primarily tech-driven, it does reflect broader digital transformation trends in luxury retail. Lilou’s direct-to-consumer (DTC) business model, supported by a sophisticated online personalization engine, allows users to design and preview custom jewelry through its web interface—an innovation that has proven key to its growth. This aligns with W.Kruk’s own efforts to modernize and digitize its distribution channels in response to changing customer behaviors and expectations in the post-COVID retail environment.
The deal is particularly notable in the context of Poland’s evolving M&A landscape, as domestic champions like VRG are increasingly consolidating national assets to compete regionally and globally. At a time when many fashion startups aim for exits through foreign acquisitions, this transaction stands out as a Polish group acquiring another fast-growing Polish brand—retaining talent, IP, and market knowledge within the country.
Moreover, the deal is a cultural win. Lilou represents a generation of Polish entrepreneurial creativity, while W.Kruk brings deep tradition and trust. Their union symbolizes the strength and maturity of Poland’s fashion and consumer goods ecosystem, where heritage meets innovation and local brands compete credibly on a European stage.
In the near term, W.Kruk plans to integrate Lilou’s operations while maintaining its unique brand DNA. The earn-out mechanism—capped at €6.7 million—reflects confidence in Lilou’s future performance, and the flexibility to finalize the deal even if all preconditions (such as Lilou’s divestment from Lilou International and a legal name change) are not met indicates strong strategic alignment between the parties.
This acquisition reinforces VRG’s strategy of profitable, brand-focused growth, and further enhances W.Kruk’s relevance for younger, experience-driven luxury buyers. It also strengthens Poland’s standing as a home for globally competitive fashion and design brands built not only on heritage, but also on digital agility and personalization.
