Labelux to complete acquisition of Jimmy Choo by end of June
Labelux the privately held luxury goods group, formally announced the acquisition of Jimmy Choo from TowerBrook Capital Partners LP and the minority shareholders. The transaction had the full support of the Jimmy Choo senior management led by Founder and CCO, Tamara Mellon OBE and CEO, Joshua Schulman, who will remain with Jimmy Choo in their existing capacity. Tamara Mellon OBE and senior management are making an investment in the Labelux subsidiary established to own Jimmy Choo.
Labelux was established in 2007 with the aim of creating a significant new global player in the expanding luxury goods sector, having built a strong portfolio of brands in luxury fashion, leather, accessories and jewellery. The existing Labelux portfolio comprises of Swiss luxury brand Bally which was acquired in 2008, New York-based apparel label Derek Lam, London-based jeweller Solange Azagury-Partridge and Italian accessories brand Zagliani.
Jimmy Choo is a world-class luxury brand. Since its inception 15 years ago, Jimmy Choo has grown to become the definitive global women’s luxury footwear brand, and has expanded successfully to include a range of complementary product categories including handbags, small leather goods, eyewear, scarves, belts, fragrance and most recently, men’s shoes. Sales have grown in every year of Jimmy Choo’s existence and over the past four years have outperformed the overall luxury goods market by an average of five times. In 2010, the company reported Net Sales of £150m and is currently experiencing double digit growth across all categories and geographies.
Commenting on the acquisition, Reinhard Mieck, CEO 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. Tamara, Josh and the team have created a world-class, customer-oriented business. We welcome them to the Labelux stable and look forward to working with them to ensure Jimmy Choo’s continuing success.”
Tamara Mellon OBE, Founder and CCO of Jimmy Choo, said:
“My ambition for Jimmy Choo to inspire women around the world has never had any limits. I am immensely proud of all we have achieved over the last fifteen years and delighted we are to be part of Labelux, a partner who I know shares our values and passion and who seeks ambitious growth in the luxury industry. This is wonderful news for the women who are, or who aspire to become, part of the Jimmy Choo lifestyle.”
Joshua Schulman, CEO of Jimmy Choo said:
‘Today’s announcement represents a significant step forward for Jimmy Choo. 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’.
Commenting on the disposal, Ramez Sousou, Co-CEO of TowerBrook, said:
“Since acquiring Jimmy Choo in 2007, we have enjoyed partnering with Tamara and Joshua in developing Jimmy Choo into one of the most prominent luxury brands in the world. Jimmy Choo has expanded from 60 stores to an international footprint of 120 sites and substantial potential awaits the Jimmy Choo brand, particularly in Asia, where Labelux has a proven track record. We have huge admiration for Labelux and are delighted that a firm of such stature will be supporting Jimmy Choo in the next stage of its development.”
Rothschild acted as financial adviser, Hogan Lovells acted as legal adviser and KPMG advised on due diligence for Labelux. Joshua Schulman and the Management Team were advised by Pearce LLP. Tamara Mellon was advised by MX Capital Partners, Vedder Price, New York and Travers Smith, London. Goldman Sachs and Morgan Stanley acted as financial adviser and Kirkland & Ellis acted as legal adviser for TowerBrook.
The transaction is expected to complete at the end of June 2011.