EQT sells CBR Fashion Group to Alteri

The deal ends a holding period of almost 11 years for EQT, which acquired the company from Apax Partners and Cinven in March 2007. EQT made the divestment from its fifth fund, which hit its €4.25bn hard-cap in December 2006.

The GP said it has significantly invested in the company's IT and logistical infrastructure. CBR generated revenues of €579m for the financial year ending in June 2017 and employs 1,200 people.

When EQT acquired the company it employed 500 people and generated revenues of more than €600m, but EQT said the company has shown double-digit growth in the key e-commerce channel.

CBR issued €450m of senior secured notes at 5.125% in the fourth quarter of 2017, according to Unquote sister publication Debtwire. EQT said the issuance significantly improved the company's capital structure and S&P assigned the company a long-term corporate credit rating of B, outlook stable, following the transaction.

Previous funding
Apax and Cinven acquired CBR from a private vendor in December 2005. Its acquisition was backed by a senior debt package arranged by UniCredit and RBS, and mezzanine facilities arranged by Lloyds and RBS.

The GPs sold the company in a secondary buyout to EQT in March 2007. EQT's bid was financed by a debt package arranged by HypoVereinsbank and RBS.

Company
Founded in 1980, CBR is a women's fashion business headquartered in Celle. It operates two main brands, Street One and Cecil. It has 1,200 employees and supplies 8,300 sales outlets in 19 European countries. The firm generated revenues of €579m for the financial year ending in June 2017 with an EBITDA margin of 14.5%.

People
EQT Partners – Marcus Brennecke (partner).
Alteri Investors – Gavin George (CEO).
CBR Fashion Group – Matthias Born (CFO).

Advisers
Acquirer – Kirkland & Ellis (legal). 

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• Topics
• Exits
• Buyouts
• DACH
• Consumer
• Germany
• EQT
• Secondary buyout
• Kirkland & Ellis