Labelux Group acquires Jimmy Choo for £500m
Transaction expected to complete next month
Labelux, the privately held luxury goods group, yesterday announced the acquisition of iconic shoewear brand Jimmy Choo for £500m from private equity firm TowerBrook and minority shareholders.
The deal is set to be completed at the end of next month, and has the full support of Jimmy Choo’s senior management team, led by founder Tamara Mellon and chief executive office Joshua Schulman – both of whom will remain with Jimmy Choo in their existing capacity.
It is as yet unclear whether Mellon, the former fashion journalist who launched Jimmy Choo in 1996, will retain her existing 17% stake in the company.
Since its inception 15 years ago, Jimmy Choo has become one of the world’s most sought after luxury fashion brands. In 2010, the company reported net sales of £150m and is currently experiencing double-digit growth.
When the deal reaches completion in June, it will mark the fourth time Jimmy Choo has changed hands in its short history.
The transaction is expected to complete at the end of next month and marks the fourth time the business has been sold since its launch.
Schulman says the acquisition “represents a significant step forward for Jimmy Choo”, adding “I am extremely proud of what our team has accomplished with TowerBrook’s partnership during these past four years. With the long term vision and support of Labelux, we will build on this success and realize the full potential of Jimmy Choo across channels, categories and geographies.”
Labelux, which was established in 2007, with the aim of creating a significant new global player in the expanding luxury goods sector, has built a strong portfolio of brands in luxury fashion, leather, accessories and jewellery.
Labelux’s existing portfolio comprises Swiss luxury brand Bally, acquired in 2008, New York-based apparel label Derek Lam, London-based jeweller Solange Azagury-Partridgand Italian accessories brand Zagliani.
Reinhard Mieck, chief executive officer of Labelux, said: “We are delighted to announce this acquisition. Jimmy Choo is an outstanding brand with enormous growth potential and the ability to deliver material growth synergies across our group.
“We welcome them to the Labelux stable and look forward to working with them to ensure Jimmy Choo’s continuing success.”
The size of the global luxury market was estimated to be worth …168bn in 2010 and is expected to record compound annual growth of 6.2% to reach …201bn by 2013. The women’s shoes and leather goods segment of the market, in which Jimmy Choo predominantly operates, is expected to grow at a faster rate than the overall luxury market.