Change Capital Partners has agreed to acquire Hallhuber GmbH, a German maker of women’s clothing and accessories, from Italy’s Stefanel. The deal includes a €25 million up-front payment and a possible €4 million earn-out.
Change Capital Partners LLP (”Change Capital”), the private equity firm specialising in retail and consumer industries, is pleased to confirm that it has reached agreement to acquire Hallhuber GmbH (“Hallhuber”). Hallhuber, a German women’s wear brand with a distinct positioning of stylish, elegant and distinguished clothes and accessories, is to be acquired from Stefanel, the Italian-listed apparel group, for a purchase price of €25 million plus a €4 million conditional earn-out. The transaction, which will be structured through a German holding company, is expected to close shortly after having obtained clearance from the German fiscal authorities.
The Company’s core business is in Germany (89 POS). It also has operations in Austria (2 POS), the Netherlands (2 POS) and has a co–operation with a distributor in Switzerland. In the latest financial year to end of December 2008, the company reported sales of €58.1m and an EBITDA of €4.9m. Sales have continued to grow and in the first six months of 2009 increased by 13%.
This will be the first acquisition made by Change Capital out of its second fund, CCP II and follows its successful fashion investments in CCP I, in Jil Sander, the iconic luxury German fashion brand and in Republic the fast growing leading multi brand young fashion retailer in the UK.
Stephan Lobmeyr, Managing Director of Change Capital, said today,
“We are delighted to have the opportunity to acquire Hallhuber. We admire greatly what Ms Hallhuber and the rest of the team have already achieved and we are excited at the prospect of working and investing together in the further development of the brand. The business is profitable and we have put in place a prudent capital structure as we want to use the cash generated by the business to open new stores and renew the existing network.”
Susanne Hallhuber, Creative Director of Hallhuber, said today,
“I am thrilled that Hallhuber is again a standalone company and to be working on the ambitious development of the brand with the backing of Change Capital Partners with their deep experience in fashion and retail. I am feeling very optimistic as this transaction will open up new opportunities for Hallhuber.”