KKR to Partner with
Management to Acquire
KKR is a private equity group with $75 billion in assets, based
out of New York City. It was co-founded by cousins Henry
Kravis and George R Roberts.
KKR is investing in SMCP Group to drive further growth under strong leadership of current
management team and to create a global leader in affordable luxury
PARIS & LONDON--(BUSINESS WIRE)-- Kohlberg Kravis Roberts & Co. LP (together with its
affiliates, "KKR") and SMCP Group (Sandro, Maje and Claudie Pierlot) ("SMCP" or "the
Company"), a leading ready-to-wear affordable luxury apparel retailer, today announced that
KKR signed a definitive agreement with SMCP's current shareholders to acquire a majority
stake in the Company alongside its management team. KKR will own approximately 65% of
the Company's share capital with management retaining approximately 35%. The agreement
remains subject to regulatory approvals and customary closing conditions.
"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", said Evelyne Chétrite,
President of SMCP Group.
"We are excited to partner with KKR", added Frédéric Biousse, the CEO of SMCP Group. "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".
Jacques Garaïalde, Partner and Managing Director in charge of KKR's French operations,
added, "SMCP is a remarkable business with an outstanding management team. The
Company has developed strong French brands with international appeal, and high quality
products at affordable prices that meet the needs of consumers around the world. We are
pleased to support the team in their growth strategy".
Over the past five years, the Company has experienced significant growth driven by a
combination of like-for-like growth and new store openings across its four brands: Sandro,
Sandro Men, Maje and Claudie Pierlot. Today, the Company has established a leading
position in the French affordable luxury segment and a fast-growing international business
with strong positions in Europe and a growing presence in the USA and more recently Asia.
SMCP operates more than 570 points of sale, and generated a turnover of 350 million euros in
2012. Approximately 150 new store openings are planned for 2013, mainly outside France.
"We are delighted to have accompanied SMCP Group during the last couple of years of rapid
development and we wish the managers, founders and KKR much success", added Daniel
Piette and Eduardo Velasco from L Capital and Léopold Meyer from Florac.
KKR was advised by Rothschild & Cie and SMCP Group was advised by J.P. Morgan and
Leonardo & Co.
About SMCP Group
SMCP Group is a leading apparel retailing group, operating in the attractive affordable luxury
apparel segment across four brands: Sandro, Sandro Men, Maje and Claudie Pierlot. Sandro
and Maje were founded by Evelyne and Didier Chétrite and Judith Milgrom and Alain Moyal in
the late 1980s and 1990s, respectively. In 2007, Evelyne and Judith were joined by Frédéric
Biousse and Elie Kouby to accelerate the development of their brands. Claudie Pierlot was
acquired in early 2009 and SMCP Group was subsequently created in 2010 upon an
investment made by L Capital and Florac. SMCP Group developed a unique and effective
business model: combining luxury codes (marketing & communication, shopping experience)
with creative design content and high-quality fabrics while leveraging best practices from the
fast fashion industry (short collection cycles and reactivity to market trends supported by an
efficient supply chain). Having already opened 69 retail outlets in North America over the last
18 months, Sandro, Maje, and Claudie Pierlot also have five stores in Hong Kong and will
open their two first stores in Shanghai in July, followed by four additional stores by the end of
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global
investment firm with $75.5 billion in assets under management as of December 31st, 2012.
With offices around the world, KKR manages assets through a variety of investment funds and
accounts covering multiple asset classes.
KKR seeks to create value by bringing operational expertise to its portfolio companies and
through active oversight and monitoring of its investments. KKR & Co. L.P. is publicly traded
on the New York Stock Exchange (NYSE: KKR), and "KKR," as used in this release, includes
its subsidiaries, their managed investment funds and accounts, and/or their affiliated
investment vehicles, as appropriate.
L Capital: Eduardo Velasco, Philippe Franchet and Manal Saleh
Florac: Léopold Meyer, Olivier Golder and Gautier Preney
Buyers: Rothschild & Cie (Laurent Baril), Bredin Prat (Sébastien Prat), Simpson Thacher &
Bartlett, Landwell, McKinsey, Roland Berger, Anne Beall, Deloitte.
Sellers: JP Morgan (Séverin Brizay), Leonardo & Co (Laurance Danon), The Financial
Company of Edmond de Rothschild, SJ Berwin (Jérôme Jouhanneaud), DLA Piper (Michel
Frieh), Shearman & Sterling (Guillaume Isaultier), KPMG (Axel Rebaudières and Vincent
Delmas), Taj (Sophie Blegent-Delaphille), Oloyrn (Frédéric Jannin and Eric Lesieur).
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