KKR is investing in SMCP Group to drive further growth under strong
leadership of current management team and to create a global leader in
PARIS & LONDON--(BUSINESS WIRE)--
Kohlberg Kravis Roberts & Co. LP (together with its affiliates, "KKR")
and SMCP Group (Sandro, Maje and Claudie Pierlot) ("SMCP" or "the
Company"), a leading ready-to-wear affordable luxury apparel retailer,
today announced that KKR signed a definitive agreement with SMCP's
current shareholders to acquire a majority stake in the Company
alongside its management team. KKR will own approximately 65% of the
Company's share capital with management retaining approximately 35%. The
agreement remains subject to regulatory approvals and customary closing
"I have created this beautiful family history with my sister, Judith
Milgrom, and I am pleased to embark on a new phase of our lives with
KKR. Alongside Elie Kouby and Frédéric Biousse, Judith and I are
reaffirming our full commitment to the business and have great ambitions
for the group: building a global leader in the affordable luxury
segment", said Evelyne Chétrite, President of SMCP Group.
"We are excited to partner with KKR", added Frédéric Biousse, the CEO of
SMCP Group. "We are proud of the Company's strong development over the
recent years and would like to thank our shareholders L Capital and
Florac for their support. We look forward to working with KKR as we
accelerate the international expansion of our brands, particularly in
the United States and Asia. KKR's global presence and extensive
experience and track-record in the international retail sector will be
important assets in helping us continue our growth trajectory".
Jacques Garaïalde, Partner and Managing Director in charge of KKR's
French operations, added, "SMCP is a remarkable business with an
outstanding management team. The Company has developed strong French
brands with international appeal, and high quality products at
affordable prices that meet the needs of consumers around the world. We
are pleased to support the team in their growth strategy".
Over the past five years, the Company has experienced significant growth
driven by a combination of like-for-like growth and new store openings
across its four brands: Sandro, Sandro Men, Maje and Claudie Pierlot.
Today, the Company has established a leading position in the French
affordable luxury segment and a fast-growing international business with
strong positions in Europe and a growing presence in the USA and more
recently Asia. SMCP operates more than 570 points of sale, and generated
a turnover of 350 million euros in 2012. Approximately 150 new store
openings are planned for 2013, mainly outside France.
"We are delighted to have accompanied SMCP Group during the last couple
of years of rapid development and we wish the managers, founders and KKR
much success", added Daniel Piette and Eduardo Velasco from L Capital
and Léopold Meyer from Florac.
KKR was advised by Rothschild & Cie and SMCP Group was advised by J.P.
Morgan and Leonardo & Co.
About SMCP Group
SMCP Group is a leading apparel retailing group, operating in the
attractive affordable luxury apparel segment across four brands: Sandro,
Sandro Men, Maje and Claudie Pierlot. Sandro and Maje were founded by
Evelyne and Didier Chétrite and Judith Milgrom and Alain Moyal in the
late 1980s and 1990s, respectively. In 2007, Evelyne and Judith were
joined by Frédéric Biousse and Elie Kouby to accelerate the development
of their brands. Claudie Pierlot was acquired in early 2009 and SMCP
Group was subsequently created in 2010 upon an investment made by L
Capital and Florac. SMCP Group developed a unique and effective business
model: combining luxury codes (marketing & communication, shopping
experience) with creative design content and high-quality fabrics while
leveraging best practices from the fast fashion industry (short
collection cycles and reactivity to market trends supported by an
efficient supply chain). Having already opened 69 retail outlets in
North America over the last 18 months, Sandro, Maje, and Claudie Pierlot
also have five stores in Hong Kong and will open their two first stores
in Shanghai in July, followed by four additional stores by the end of
Founded in 1976 and led by Henry
Kravis and George
Roberts, KKR is a leading global investment firm with $75.5 billion
in assets under management as of December 31st, 2012. With offices
around the world, KKR manages assets through a variety of investment
funds and accounts covering multiple asset classes. KKR seeks to create
value by bringing operational expertise to its portfolio companies and
through active oversight and monitoring of its investments. KKR & Co.
L.P. is publicly traded on the New York Stock Exchange (NYSE: KKR), and
"KKR," as used in this release, includes its subsidiaries, their managed
investment funds and accounts, and/or their affiliated investment
vehicles, as appropriate.
L Capital: Eduardo Velasco, Philippe Franchet and Manal Saleh
Florac: Léopold Meyer, Olivier Golder and Gautier Preney
Buyers: Rothschild & Cie (Laurent Baril), Bredin Prat (Sébastien Prat),
Simpson Thacher & Bartlett, Landwell, McKinsey, Roland Berger, Anne
Sellers: JP Morgan (Séverin Brizay), Leonardo & Co (Laurance Danon), The
Financial Company of Edmond de Rothschild, SJ Berwin (Jérôme
Jouhanneaud), DLA Piper (Michel Frieh), Shearman & Sterling (Guillaume
Isaultier), KPMG (Axel Rebaudières and Vincent Delmas), Taj (Sophie
Blegent-Delaphille), Oloyrn (Frédéric Jannin and Eric Lesieur).
+ 33 1 53 70 74
Michael Turner / Nina Suter
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