Change Capital Partners LLP, the private equity firm specialising in retail and consumer industries, has reached agreement to sell Jil Sander AG, t
Change Capital Partners LLP, the private equity firm specialising in retail and consumer industries, has reached agreement to sell Jil Sander AG, the iconic fashion house which provides luxury women’s and men’s ready-to-wear, accessories, footwear and fragrances, to Onward Holdings Co, Ltd, the Tokyo-listed apparel group, and its European subsidiary, GIBO’ Co SpA, for an equity value of EUR 167 million.
Stephan Lobmeyr of Change Capital Partners says, “We are proud of what we have been able to achieve with Jil Sander. We are pleased to reach agreement with Onward for the sale of this fantastic company, which has a great management team and excellent growth prospects. When we acquired Jil Sander from Prada, we saw a tremendous opportunity to re-establish the profitability of this iconic brand. Under our ownership Jil Sander has now achieved a successful turnaround and we have laid the foundations for significant growth in the coming years.”
The transaction, which will be structured through Onward’s acquisition of Violine S.Ã .r.l., is expected to close shortly after having obtained regulatory clearance.
Since its acquisition by Change Capital Partners in April 2006, management of Jil Sander have completed a successful turnaround and created a solid platform for further growth. Operating EBITDA has been transformed from negative EUR 12.9m in 2005 to positive EUR 6.1m in 2007, and during this time, the business has strengthened its distribution network in USA, Europe and Japan, extended its product range, developed a strong wholesale operation and created a strong licensing position in fragrances, eyewear and lingerie/beachwear.
Following new store openings in Japan, Germany and Italy and the relocation of stores in London, Paris and New York to optimise profitability, Jil Sander now has 61 stores in aggregate comprising 26 directly operated stores as well as an extensive franchise network encompassing Asia, Europe and North America.
Onward, through GIBO, has recently made a number of acquisitions in the luxury goods market in Europe including Iris, which manufactures high-end shoes for Marc Jacobs, Chloe, John Galliano and Viktor & Rolf, and Joseph, one of the UK’s leading luxury apparel retailers with more than 60 sales points internationally. For this financial year, Onward’s European businesses, including Jil Sander, are expected to achieve sales of around EUR470 million in aggregate, including sales from licensees of around EUR120 million.
