Jones Group buys Kurt Geiger for $350m
US apparel and footwear retailer, the Jones Group, has announced that it has acquired UK-based footwear retailer Kurt Geiger, from Graphite Capital, a UK mid-market private equity firm, for approximately $350 million (£215 million) in cash, inclusive of debt acquired.
Kurt Geiger will serve as Jones’ base in Europe. The company has stated that it expects to achieve significant revenue synergies by leveraging the combined networks of partners, infrastructure and strong department store relationships to expand product distribution worldwide. On a trailing 12-month basis ended April 30, 2011, Kurt Geiger reported net revenues of approximately $332 million (approximately £205 million).
The Kurt Geiger management team remains in place. Neil Clifford will continue as CEO; Rebecca Farrar Hockley will remain buying and creative Director; and Dale Christilaw will continue as finance director for the Kurt Geiger team.
Wesley R Card, the Jones Group CEO, 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. We have the utmost respect for Neil and have got to know the team well over the years as our distribution partner for Nine West in the UK. We welcome them to Jones.”
Richard Dickson, the Jones Group president and CEO of Branded Businesses, said: “Our mission is to build the most powerful portfolio of brands in fashion. As part of our framework for growth, we are optimising our existing portfolio and launching new brands to create value. Kurt Geiger’s portfolio of premier footwear, exceptional brand management and best-in-class product expertise makes it an ideal complement to our business and long-term goals. By leveraging our deep retail networks worldwide, there is substantial opportunity to grow Jones’ revenue base internationally and to introduce Kurt Geiger’s brands to the US. We look forward to collaborating with Kurt Geiger’s leading design and merchant talents, who will be instrumental to the rollout of our mission.”
Kurt Geiger distributes owned brands, including Kurt Geiger, Carvela and KG, and licensed brands, including Nine West, French Connection and Lipsy, in 49 company-operated retail locations and department stores. In addition, Kurt Geiger operates 156 multi-branded shoe concessions in 14 major department store groups including Harrods, Selfridges, House of Fraser and La Rinascente. Since its management buyout in 2008 (backed by Graphite Capital), Kurt Geiger’s strategy of investment and brand growth has led to increases in revenues and profits, in addition to the doubling of the number of Kurt Geiger stores to 60. Kurt Geiger has established a presence in the Middle East, including stores across Dubai, Bahrain and Qatar, Russia and Turkey.
Neil Clifford said: “Kurt Geiger has experienced exceptional growth over the last five years via the expansion of the core business and commitment to increasing our global presence. 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. We look forward to leveraging our global infrastructures to bring the Kurt Geiger and the Jones Group brands to more audiences worldwide.”
