LBO France is selling 20% stake in The Kooples since 2011. Private equity funds are scrambling for a sector that has made the success of strong brands such as Maje Sandro but also known duds.
Barely a month after finalizing the acquisition of the IKKS brand, LBO France is preparing to part with one of its active beacon of fashion, The Kooples, and mandated the California investment bank Sage, sector specialist to support him in the process. The fund led by Robert Daussun had taken a 20% share in this basic house dedicated to couples in 2011, a valuation of 250 million euros and then accompanied her
development, in France and abroad. Revenues rose 120 million euros in 2011 to about 220 million euros in the current fiscal year, which closes at the end of August, for an EBITDA of 38 million euros.
This is due to an active program of store openings in France and abroad. While the fashion house that was present when entering the United Kingdom LBO France, it has since opened shops in 30 countries and put its energy today on the United States. After getting a place in the big stores like Macy's and Bloomingdale's, she opened five outlets in clean, between East and West coast, since the beginning of the year and plans to open 35 new within four years. A strategy that diverges local partnerships usually used by groups prêtàporter to break into new territories.
If it has not yet reached critical mass, the brand has become known for its advertising campaigns featuring modern couples reminds runaway success of Sandro Maje. After only two and a half years in the portfolio, L Capital (LVMH galaxy funds) and Florac (holding the Dreyfus family) had sold the company to KKR for 650 million euros, or 11 times its EBITDA, in spring 2013. At this level of multiple, The Kooples could be valued over EUR 400 million.
The contenders were bound for the asset, which certainly requires significant cash flows for international development and its second brand, The Kooples Sport. LBO France has decided to activate a sale after receiving expressions of interest from two funds Permira, which recorded a net return of 1.2 billion euros through the sale of its share in Hugo Boss and Valentino, and lost the bidding for a stake in Roberto Cavalli. And General Atlantic, a US fund also shareholder of Airbnb and Uber. A sign that does not lie on the reputation that the brand has already gained in a short time in the land of Uncle Sam. In addition, L Capital, which has taken root in bash earlier this year, also showed his activism in the sector in France. Before him, Zadig & Voltaire had sold 30% of its capital to another US fund TA Associates in 2012.
But if success stories exist, they must not forget that the sector can save serious setbacks when flagship brands are losing popularity. That's what happened to Gerard Darel, bought by fund Advent for 300 million euros in 2008, which had enjoyed success with his bag 24 hours but failed to renew itself since, and was placed in receivership. In 2008, it was Morgan, owned by Apax Partners, which had to be placed in judicial proceedings because of the crisis. The context today is very different for The
Kooples, which can count on the manna of the US market, certainly very competitive, to meet its target of generating 350 million euros in 2018, of which 100 million Atlantic.