Baring Asia acquires “substantial” stake in Cath Kidston

Private equity firm Baring Asia has acquired a “substantial” stake in fashion and lifestyle retailer Cath Kidston for an undisclosed sum, as the brand looks to expand in Asia. Baring bought the stake from Cath Kidston’s existing majority shareholder, private equity company TA Associates, as well as

members of the company’s management team, in what is thought to be a multi-million pound deal, although no financial details have been revealed.

The deal will mean that Baring will have “equal ownership” with TA, and will partner with TA and the current management team to expand the brand and further develop its network in Asia, as the fashion and lifestyle brand looks to capitalise on the growing consumer demand for global brands in Asia.

Commenting on the acquisition, Kenny Wilson, CEO at Cath Kidston, said: “Finding the right partner to help us manage the development of the Cath Kidston brand in Asia was a key consideration for us and I am delighted that Baring Asia has invested in the future of our business.

“Their support and operational experience will be invaluable as we expand further in the region. And with the continued backing from TA Associates we now have an even greater opportunity to build on the enormous appeal of the Cath Kidston brand internationally.”

Cath Kidston founded her eponymous store in 1993 in London’s Holland Park, now the brand known for its ‘modern vintage’ prints has more than 160 stores worldwide, including in Europe in the UK, Spain, France and Ireland, as well as in Asia in China, Japan, South Korea, Taiwan, Thailand, Hong Kong, Indonesia, Malaysia and Singapore. It is the brands popularity abroad especially in Japan, where the brand already has more than 30 stores that has helped make the brand attractive to investors.

Baring Asia buys Cath Kidston stake

Dar Chen, managing director at Baring Asia, said: “Cath Kidston is an established and profitable brand and, with strong underlying trends in consumer demand across Asia, we look forward to further developing the brand across the region.

“We believe that cross border transactions of this nature will increasingly enable Baring Asia to demonstrate the value that our pan-Asia network and hands-on operational experience can bring to Western corporations looking to develop their business in the region.”

Christopher Parkin, managing director at TA Associates, added: “We have enjoyed partnering with Cath Kidston over the past four years and assisting with their international growth. We welcome Baring Asia as a new investor and look forward to working closely with them and management as Cath Kidston continues its international expansion.”

On the back of its 20th anniversary year the retailer has seen growth across the board, in the year ended March 30, 2014 group sales increased 10 percent to 116 million pounds with EBITDA rising 19 percent to 25 million pounds, while international retail sales increased 37 percent to 46 million pounds.

Image: Cath Kidston