US-based private equity firm Blackstone has snapped up a stake in luxury camera business Leica.

US-based private equity firm Blackstone has snapped up a stake in luxury camera business Leica.

Headquartered in Germany, Leica is divesting a 44 per cent interest to investment funds advised by Blackstone for an undisclosed amount.

Andreas Kaufmann, chairman of the supervisory board of Leica, comments: ‘With Blackstone we have gained an experienced and internationally established strategic partner, which also understands and appreciates the established brand philosophy and business model of Leica.

Kaufmann adds that following the ‘successful turnaround’ of the business and record sales last year, the company is now focused on the continued development of the brand and growth into new markets including Asia, South America and the Middle East.

Leica, which manufactured the world’s first compact camera, nearly slipped into bankruptcy in 2005 after loosing ground to other camera manufacturers in the digital drive.

Kaufmann, a German aristocrat who lives in Austria, bought into the Leica business in 2004 through investment company ACM Projecktentwicklung, and then took his stake to more than 95 per cent shortly after. According to Kaufmann, he has no plans to sell any further shares and will remain the majority shareholder.

Axel Herberg, senior managing director at Blackstone, says that Leica is ‘deeply rooted’ in Germany’s history and that Blackstone will look to grow the business in a manner that is true to this heritage.

Herberg adds: ‘We are very excited about supporting Leica to secure long-term commercial relationships, specifically in emerging markets, and help strengthen the company’s operational and retailing capabilities globally.’

According to a statement Leica reported sales for the 2010/2011 financial year of €248.8 million (£217 million), and in doing so increased turnover by 57.2 per cent on the previous year.