Graphite Capital, the leading UK mid-market private equity specialist, has backed the GBP95m management buy-out of Kurt Geiger, Europe’s luxury branded shoe retailer, from Barclays Private
Graphite Capital, the leading UK mid-market private equity specialist, has backed the GBP95m management buy-out of Kurt Geiger, Europe’s luxury branded shoe retailer, from Barclays Private Equity.
Kurt Geiger, which was voted ‘Coolest Shoe Brand’ by Vogue readers in 2007, sells its own and third party premium and luxury footwear brands such as Prada, Gucci and Jimmy Choo, through a wide range of channels.
These include top department stores – Harrods, Selfridges, House of Fraser, John Lewis and Liberty. It also has 16 of its own stores, six airport outlets, international concessions in Printemps in France and La Rinascente in Italy and a range of licensing, wholesaling and franchising operations.
Neil Clifford, Kurt Geiger’s chief executive, is leading the buy-out. The team also includes buying and creative director, Rebecca Farrar-Hockley; finance director, Dale Christilaw; retail operations director, Sally McClymont; and wholesale and licensing director, Andrew Lee. All will be reinvesting in the new company.
Clifford says: ‘We offer some of the world’s best shoes in an unrivalled retail environment and are well recognised for the quality of our range and the high standard of our customer service. We will continue to invest in new growth opportunities with our department store partners. With Graphite’s support we will pursue our strategic objective of becoming the leading global luxury and premium shoe retailer.’
Graphite senior partner, Markus Golser, comments: ‘We are excited to be backing a management team of such a high calibre. Kurt Geiger has great depth in its design and merchandising functions and tremendous opportunity to consolidate its position as the leading luxury branded shoe retailer.’
Graphite has a strong track record of successful investments in retail and consumer ventures such as Jane Norman, Maplin Electronics, Wagamama, Game and Paperchase. ‘We will use our retail expertise to support the management team’s ambitious growth plans,’ Golser adds.
Steven Silvester, director at Barclays Private Equity, comments: ‘Kurt Geiger has provided us with a very good return on our investment and adds to our first class track record in the retail sector.
‘During the period of our involvement, and with our strong support and active encouragement, Neil Clifford and his team have taken the business from strength to strength. At the same time, they have carefully laid the foundations for further growth both in the UK and overseas, which should allow the strong financial performance to continue under new ownership."
Markus Golser, Anne Hoffmann, Andy Gray and Mudassir Khan managed the transaction for Graphite which has acquired a substantial majority stake in the business. Lloyds TSB and The Royal Bank of Scotland provided debt facilities.
Graphite Capital is a specialist provider of private equity finance to mid-market
companies in the UK. Graphite focuses on management buy-outs and buy-ins, expansion capital, replacement capital and turnaround opportunities. It invests in
Graphite manages more than GBP1.2bn through three private funds and the publicly quoted Graphite Enterprise Trust. Kurt Geiger is the second acquisition made by Graphite’s latest fund, Graphite Capital Partners VII, which raised GBP555m in May 2007.
The fund’s first investment was Alexander Mann Solutions, the world’s largest independent provider of recruitment process outsourcing solutions to blue-chip companies. Graphite’s previous fund invested in 15 companies including Park Holidays UK, the largest holiday home and caravan park operator in the south of England and Micheldever Tyre Services, the UK’s largest wholesaler of car, 4×4 and motorcycle tyres.
In the last two years Graphite has completed 11 exits and refinancings with a total value of over £500 million. These have included Golden Tulip, the superior budget hotels group, and Huntress, one of the largest white collar recruitment specialists in the UK. Graphite won the EVCJ financial sponsor of the year award in both 2006 and 2007 and the Global Investor Alternative Asset Manager award in 2007. It was also voted UK private equity firm of the year by readers of Private Equity Online for 2005 and 2006.
Kurt Geiger is Europe’s largest luxury shoe retailer and has over 70 brands in its portfolio, including Gucci, Prada, Christian Louboutin, Jimmy Choo, Dolce & Gabbana, Paul Smith, Church’s and John Lobb.
The company has 96 trading locations with over 70 concessions in leading department stores, including Harrods, Selfridges, Liberty, House of Fraser, Fenwick and John Lewis. It is also the chosen footwear partner for BAA in UK airports.
In September 2005, Kurt Geiger achieved its first international move with a concession opened in Printemps, Paris. This was followed by being chosen as the strategic partner for La Rinascente store group in Italy where Kurt Geiger is the exclusive operator of the store group’s shoe business.
In 2007, the company entered into a joint venture franchise agreement with the Landmark Group and plans to open 29 stores across the Gulf region. 2007 also saw the company sign its first licensing deals with Agent Provocateur and French Connection.
Barclays Private Equity is one of the leading investors in mid market buy-outs in the UK and across Europe, with more than 350 transactions to its name, typically ranging in size from EUR25m to EUR250m. In the UK, it has a sector focus on consumer and travel, financial services, support services and healthcare.
Established in 1979, it developed a UK regional network in the early nineties and the first European office, Paris, opened in 1990. In addition to the mid-market buy-out business, Barclays Private Equity also has a separate team managing funds targeted at the infrastructure sector.
Barclays Private Equity recently announced the closing of its third European buy-out fund ahead of target at EUR2.4bn.
