The Kooples to seek new investor by 2016 to accelerate Asian growth - executives
The Kooples, a French ready-to-wear clothing group, will start the search for a new investor to accelerate its expansion plans in Asia in coming months or in 2016, co-CEOs and co-founders Nicolas Dreyfus and Emmanuel Stern said.
The company is not for sale at this stage as the business is focused on its “growth potential”, they said.
The executives made the comments in response to recent press speculation that the company was up for sale.
A source with knowledge of the situation said The Kooples recently received two offers from undisclosed US-based private equity houses. However, the owners have not initiated a sale process nor have they mandated a bank to assess such offers, the source added.
Since the creation of the Kooples in 2008, the company has been approached by European, US and Asian private equity funds and strategic industrial players, the two executives said. However, the company wants to remain focused on its US expansion this year.
According to Dreyfus, the Kooples generated EUR 22m in sales in 2014 in the US and aims to reach EUR 100m in four years. Japan, China and Hong Kong are the next three new markets to develop, he added.
In 2013, the company generated EUR 180m in sales and expects EUR 220m in sales in 2014. In 2013 EBIDTA was worth EUR 32m, Stern said. The source with knowledge of the situation said 2014 EBITDA would reach EUR 40m.
The Kooples is aiming at reaching at least EUR 350m in sales in three years on the back of its growth plans in the US and Asia, they said.
The Kooples’ majority owners are co-CEOs Emmanuel Stern and Nicolas Dreyfus, co-founder and Chairman Laurent Elicha, and co-founder Alexandre and Raphael Elicha. All of the owners want to keep their stakes for the time being, the co-CEO said.
In 2011, LBO France, the French private equity fund, bought a 20% stake in The Kooples for an enterprise value of EUR 250m.
“We have not talked with our minority investor yet. We will see in the coming months or next year what our strategy will be to accelerate our development in Asia,” Stern said, while confirming The Kooples has so far not mandated any financial or legal advisors.
Should The Kooples’ majority owners decide to sell, LBO France will also look to exit the business, the source with knowledge said.
The French ready-to-wear clothing group operates directly in 13 countries in Europe and North America and sells clothes in 30 countries including South Korea, Singapore and Thailand.
LBO France declined to comment on a potential exit.