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Jimmy Choo Bought by Labelux

Private equity firm TowerBrook Capital Partners sold Jimmy Choo to Labelux GmbH for terms undisclosed. Labelux, the private investment firm, is reportedly paying up to $893 million in the deal, Reuters reported earlier. 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.

PRESS RELEASE:

London – 22 May 2011 – Labelux GmbH (“Labelux”), the privately held luxury goods group, today announces the acquisition of Jimmy Choo from TowerBrook Capital Partners LP (“TowerBrook”) and the minority shareholders.

The transaction has the full support of Jimmy Choo senior management led by Founder and Chief Creative Officer, Tamara Mellon OBE and Chief Executive Officer, 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, 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-Partridge and Italian accessories brand Zagliani.

The size of the global luxury market was estimated to be worth €168 billion in 2010 and is expected to record compound annual growth of 6.2% to reach €201 billion 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.

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, 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. 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 Chief Creative Officer 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.