Agent Provocateur owner 3i seeking exit; Rothschild lined up as sale adviser, Alix Partners advising on turnaround strategy - report
Agent Provocateur private equity owner 3i [LON:III] has hired the restructuring specialist Alix Partners to advise on a turnaround strategy ahead of a sale of the UK-based lingerie company, The Sunday Times reported. The newspaper did not attribute the information about the appointment but went on to cite City sources who said prospective buyers had been alerted.
An auction is imminent, the report said, adding the investment bank Rothschild is standing by for the advisory mandate on the sale process.
The article noted that 3i wrote down Agent Provocateur’s value by GBP 39m in November due to accounting irregularities. 3i subsequently injected GBP 4m of cash into Agent Provocateur, the item added.
One retail source cited by the newspaper estimated that Agent Provocateur might fetch as little as GBP 15m (EUR 17.5m).
Agent Provocateur’s recent problems will likely narrow the field of potential buyers, the article said. Insiders cited by the report the sale will probably be of interest to turnaround specialists such as Rutland Partners and Alteri Investors.
3i refused to comment, the item said adding that the newspaper was unable to contact Rothschild and Alix Partners by its publication deadline.
Background:
This news service reported on 10 April 2015 that 3i had postponed a sale of Agent Provocateur following a strategic review conducted by the investment bank Goldman Sachs.