Warburg Pincus is buying a majority stake in Reiss Holdings. The deal values the Reiss business at 230 million pounds ($260 million). Reiss is a men’s and women’s fashion and accessories brand. David Reiss will retain a significant investment in the business and will remain as Chairman and CEO. Morgan Stanley advised Reiss Holdings while Squire Patton Boggs was their attorney. Financo acted as financial advisor to Warburg Pincus, while Freshfields Bruckhaus Deringer LLP acted as legal advisor.
LONDON, April 13, 2016 /PRNewswire/ — Reiss Holdings (“the Company”), owner of the global men’s and women’s fashion and accessories brand REISS, is pleased to announce that an affiliate of Warburg Pincus, a leading global private equity firm focused on growth investing, has entered into an agreement to acquire a majority stake in the Company, valuing the business at £230 million.
REISS, founded by David Reiss in 1971, is an international fashion brand offering affordable luxury for both men and women. The company currently operates from over 160 locations in 15 countries and also has a highly developed e-commerce presence. In the year to January 2016, the company generated sales of £146 million and EBITDA of £24.4 million.
The partnership with Warburg Pincus will enable Reiss to expand further both in the UK and internationally, particularly in North America, Asia and Australia, building on REISS’ success in these markets to date and on Warburg Pincus’ global expertise in working with growth businesses. David Reiss will retain a significant investment in the business and will remain as Chairman and CEO.
David Reiss, founder and Chairman of Reiss, commented, “I am delighted to be working with Warburg Pincus as we take REISS to the next stage of its development. We have built a great business providing our customers with timeless luxury at affordable prices and I am confident that working together we will be able to build REISS into a truly global fashion brand. I would like to thank all of the people who have worked with me over many years for their contribution to the success of REISS and look forward to being part of the next phase of the Reiss journey.”
Paul Best, Managing Director at Warburg Pincus, commented, “As long-term growth investors, we look forward to partnering with David and his team and supporting the global expansion of REISS. The business has built an enviable position in its core UK market, with a broad and loyal customer base, and we believe there is a significant opportunity to build on this success and accelerate development internationally.”
Morgan Stanley acted as sole financial advisor to Reiss Holdings while Squire Patton Boggs acted as legal advisor. Financo acted as financial advisor to Warburg Pincus while Freshfields Bruckhaus Deringer LLP acted as legal advisor.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $40 billion in private equity assets under management. The firm’s active portfolio of more than 120 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 15 private equity funds, which have invested more than $55 billion in over 750 companies in more than 40 countries.
Warburg Pincus has significant experience of building retail companies across the world including Neiman Marcus (US), Poundland (UK), InTime (China), Kidswant (China), Restoque (Brazil), Pet Center (Brazil), Kalyan Jewellers (India) and Biba (India).
The firm is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, London, Luxembourg, Mumbai, Mauritius,San Francisco, São Paulo and Shanghai. For more information please visit www.warburgpincus.com.