Kurt Geiger sold for £215 million
03 June 2011 10:27
Kurt Geiger - Europe's largest luxury shoe retailer - was sold for £215 million today to a prominent American fashion business.
Jones Group, a New York-headquartered firm which owns fashion brands such as Nine West, has bought Kurt Geiger from London-based private equity firm Graphite Capital.
Kurt Geiger, which was bought by Graphite for £95 million in 2008, was established in 1963 and now operates from more than 200 locations worldwide, including 49 stores and 156 concessions in department stores such as Harrods.
The takeover is the latest move in the fashion and luxury goods sector - last week shoe designer Jimmy Choo was bought by investment firm Labelux - as buyers look to tap into fast-growing consumer markets in Asia.
Kurt Geiger has four own-label brands - Kurt Geiger, KG, Carvela and Miss KG - and also sells third-party brands ranging from Gucci to UGG.
Graphite bought the firm from Barclays Capital in 2008 and before that it was owned by Mohamed Al Fayed.
The company has expanded since it was bought out by Graphite, including 24 new stores in the UK as well as entering department stores such as Selfridges, House of Fraser and John Lewis.The company has also opened stores in Dubai, Kuwait, Qatar and Bahrain.
Neil Clifford, who will continue as Kurt Geiger chief executive, said: "Kurt Geiger is still relatively young in terms of growth profile, with great potential still to be fulfilled.
"We have developed a strong relationship with Jones and recognise it as an established designer, retailer and wholesaler in the US.
"Jones has a clear track record of supporting and growing its brands and we are confident that we have found the right strategic partner to help evolve our business."
Jones said the acquisition positioned it as one of the world's most powerful portfolios of fashion footwear and Kurt Geiger will serve as its hub in Europe.
Wesley Card, Jones chief executive, said: "This transaction is about pursuing opportunities to optimise our portfolio and establishing a strong foothold in Europe.
"The addition of Kurt Geiger to Jones is consistent with our strategy of identifying companies with best-in-class talent and proven brands that have the potential for substantial growth."
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