KKR acquisition of Sandro and Maje confirmed

Private equity firm KKR has acquired a majority stake in SMCP Group, which owns French clothing brands Sandro, Maje and Claudie Pierlot, after coming to an agreement with the company’s current shareholders, and plans to accelerate the fashion

brands international expansion.

As part of the definitive agreement, Kohlberg Kravis Roberts & Co will partner with SMCP Group’s management team, with KKR owning approximately 65 percent of the company’s share capital, while management will retail 35 percent.

In January, the three brands were put up for auction to replace the two shareholders funds SMCP, L Capital (LVMH) and Florac, which together held 51 percent of shares, and the group attracted interest from numerous investors, however earlier this month KKR were singled out as the front runners.

KKR to grow SMCP Group brands internationally

Over the past five years, SMCP Group has experienced significant growth across its brands – Sandro, Maje and Claudie, through like-for-like growth as well as new store openings, and in 2012 the company generated a turnover of 350 million euros.

With KKR on board, it is hoped that the new investment will help to accelerate the French fashion brands international expansion as well as establish the group as a leader in the affordable luxury marketplace. Currently the group operates close to 500 stores, mainly located in Europe, and KKR plans to grow its presence in the US and in Asia, with more than 150 new store openings planned for 2013, mainly outside France.

Commenting on the deal, Evelyne Chétrite, president of SMCP Group, said: “I have created this beautiful family history with my sister, Judith Milgrom, and I am pleased to embark on a new phase of our lives with KKR.

“Alongside Elie Kouby and Frédéric Biousse, Judith and I are reaffirming our full commitment to the business and have great ambitions for the group: building a global leader in the affordable luxury segment.”

Frédéric Biousse, the CEO of SMCP Group, added: “We are proud of the Company’s strong development over the recent years and would like to thank our shareholders L Capital and Florac for their support.

“We look forward to working with KKR as we accelerate the international expansion of our brands, particularly in the United States and Asia. KKR’s global presence and extensive experience and track-record in the international retail sector will be important assets in helping us continue our growth trajectory.”

How much money is involved with the acquisition by KKR, which is still subject to regulatory approvals and customary closing conditions, was not disclosed, however it was earlier rumoured that KKR made a 650 million euro bid.

Image: Sandro