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Labelux to acquire Jimmy Choo

24/05/2011
German luxury goods company Labelux, owner of Bally, has announced the acquisition of high-end footwear brand Jimmy Choo from TowerBrook Capital. Commentators said Labelux believed it could grow the Jimmy Choo brand, principally by expanding its business in Asia, especially China. Recent moves by Jimmy Choo into accessories and into men’s shoes to complement its main lines for women are other possible growth areas.

The details of the deal offered by Labelux have not been disclosed, but Jimmy Choo has been valued at more than $650 million.

“We are delighted to announce this acquisition,” said Labelux chief executive, Reinhard Mieck, in a statement. “Jimmy Choo is an outstanding brand with enormous growth potential and the ability to deliver material growth synergies across our group.”

TowerBrook Capital acquired Jimmy Choo for £180 million from Lion Capital in February 2007 and controls 83% of the company. Tamara Mellon, who helped set up the business, is the holder of the other 17% of the equity. At the time of the Labelux announcement, TowerBrook co-chief executive, Ramez Sousou, commented: “Jimmy Choo has expanded from 60 stores to an international footprint of 120 sites and substantial potential awaits the brand, particularly in Asia.”

Tamara Mellon will stay on as chief creative officer.

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