Private equity firm LDC has exited its investment in lingerie and swimwear business Eveden Group.
The £148 million deal, which sees Wocaol Holdings acquire the stake, comes six years after LDC took a minority stake investment in Eveden. According to LDC the firm is set to net a return of 3.8x on its original transaction.
Wocaol Holdings is listed on the Tokyo Stock Exchange and is said to have a market capitalisation of $1.5 billion (£938 million), with operations in Asia, Europe and the US.
Since LDC took an interest in the Northamptonshire-based business, Eveden has achieved sales growth in the UK and internationally as well as completing the acquisition of French lingerie brand Huit, according to a statement.
For the year to date June 2011, Eveden posted a turnover of £81.9 million, an 18 per cent rise on 2010, and pre-tax profit of £8.4 million, up 47 per cent.
Martin Draper, LDC’s new business managing director, comments, ‘In Eveden we recognised the opportunity to partner with a high-quality management team in a business with a portfolio of market leading brands, which over time, has delivered considerable sales and profit growth.
‘The exit to Wacoal represents an excellent outcome for Eveden. Having worked closely with the management team over the last six years, we are keen to ensure the right strategic fit was achieved for the business.’
Tracy Lewis, chief executive of Eveden, says LDC’s strategic input and challenge has been ‘invaluable’ to Eveden.
‘The deal with Wacoal is the right partner for Eveden, as the strength of their brand portfolio will help to leverage our market leading position in the UK as well as enhance our presence in the USA and Asia.’
The deal for LDC is its second in a week following its support of Airline Services’ management buy-out.