London and New York-headquartered private equity firm Towerbrook Capital Partners has secured an exit from its investment in luxury shoe business Jimmy Choo, four years after the firm paid £185 million for the company.
London and New York-headquartered private equity firm Towerbrook Capital Partners has secured an exit from its investment in luxury shoe business Jimmy Choo, four years after the firm paid £185 million for the company.
Privately held luxury goods group Labelux, which is based in Austria, has acquired the shoe company for £500 million, following reported net sales of £150 million in 2010.
Towerbrook initially acquired an 83 per cent stake in Jimmy Choo in 2007 from Lion Capital, a private company who first purchased the shoe retailers from Phoenix Equity Partners for £110 million in 2004.
CEO of Labulux, Reinhard Mieck, says that Jimmy Choo is an ‘outstanding brand’ with good growth potential, and synergies across the Labelux group.
Commenting on the exit, co-CEO of Towerbrook, Ramez Sousou, adds: ‘Since acquiring Jimmy Choo in 2007, we have enjoyed partnering with Tamara [founder] and Joshua [CEO] in developing Jimmy Choo into one of the most prominent luxury brands in the world.’
As part of the deal founder and chief creative officer, Tamara Mellon, and chief executive officer, Joshua Schulman, will remain at Jimmy Choo in their existing roles.
Mellon adds: ‘I am immensely proud of all we have achieved over the last fifteen years and delighted we are part of Labelux, a partner who I know shares our values and passion and who seeks ambitious growth in the luxury industry.’
The deal marks the third involvement by financial advisers Rothschild, whose global head of consumer products, Akeel Sachak, has been involved in all three sales.
Goldman Sachs and Morgan Stanley ran the auction process for Towerbrook while legal advice was provided by Hogan Lovalls and due diligence by KPMG.
Since Jimmy Choo’s acquisition in 2007 it grew from 60 to 120 international shops. The business was founded in 1996.
