Carlyle to buy Dutch lingerie brand Hunkemöller

Carlyle has confirmed that it is buying Dutch lingerie brand Hunkemöller from its private equity owners, PAI Partners, following up its fashion investment in luxury brands Moncler and Italian retailer Twin Set.

The European-focused upper-mid market buyout fund didn’t disclose the terms of the transaction, but a source has been quoted across the media as saying that Carlyle paid around eight times Hunkemöller's core earnings (EBITDA) of 55 million euros, which would value it at around 440 million euros.

Hunkemöller is the largest high-street lingerie brand in the Benelux region and it has been reported for a number of months that other private equity firms including Sycamore were looking to snap it up from PAI Partners.

Under PAI Partners’ ownership, Hunkemöller has become a significant omnichannel lingerie brand with a global e-commerce presence and a footprint of more than 700 retail stores across Europe. As well as being strong in the Benelux region, it also has a significant presence in Germany and is increasing its retail footprint across France, Spain and Scandinavia. The brand also has an e-commerce presence in the UK.

PAI Partners sells Hunkemöller to Carlyle

Philip Mountford, CEO of Hunkemöller said: “Hunkemöller has seen substantial growth over the last five years developing from a physical retailer into becoming the leading European omnichannel lingerie brand. PAI Partners have been instrumental in helping us through this journey.

“The Carlyle Group will work with us to continue to enhance our strategic vision and grow the business further as we leverage Carlyle’s global network, its extensive experience and expertise in the retail fashion sector.”

Marco De Benedetti, managing director and co-head of The Carlyle Europe Partners added: “We’ve admired the Hunkemöller brand for a long time, watching it transform very impressively from its roots as a Benelux retailer to becoming a major European omnichannel lingerie brand.

“Hunkemöller has differentiated itself from its competitors by winning market share during a challenging economic period. We are looking forward to backing Philip Mountford and his management team as the company will be entering the next stage of its exciting journey.”

The transition remains subject to advice of the Dutch works council and consultation of the Belgian and European works council as well as approvals from relevant regulatory authorities. The transaction is expected to be completed in the first quarter of 2016.

Image: Hunkemöller