Blackstone acquires Jack Wolfskin for €700m

Diana Petrowicz
21 July 2011

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Private equity house Blackstone has acquired outdoor equipment and clothing company Jack Wolfskin in a secondary buyout worth €700m.

Former owners Barclays Private Equity and Quadriga arranged an auction process earlier this year but did not receive bids in the expected value range. Blackstone then initiated exclusive negotiations with the vendors offering a higher purchase price.

Blackstone is planning to support further growth in Germany and internationally. The deal is still subject to approval by the regulatory authorities and is expected to close in August.

Founder and CEO Manfred Hell will leave the management board following the deal.

Previous funding
Barclays Private Equity and Quadriga acquired Jack Wolfskin in 2005 for €105m. Since then the company has expanded internationally and launched its first stores in the UK as well as in China. The company now plans to enter the US market.

Debt
Bank of America Merrill Lynch, Morgan Stanley, UBS and IKB are reported to have provided a debt senior debt structure of €500m.

Company
Founded in 1981, Jack Wolfskin is an outdoor clothing and equipment producer headquartered in Idstein. Currently the business employs about 430 people and operates approximately 4,000 retail and about 400 franchise stores in Germany, the UK and China. In the last year the company increased its turnover by 21% to €304m.

People
Dr Axel Herberg is senior managing director at Blackstone and Dr Peter Hammermann and Michael Bork represent Barclays Private Equity.

Advisers
Equity - Gleiss Lutz, Dr Jan Bauer (Legal); Simpson Thacher, Michael Wolfson, James Connor, Euan Gorrie, Lucy Young, Linn Mayhew, David Vann, Étienne Renaudeau, Sabrina Lee, Meredith Jones (Legal)

Company - Luther, Dr Eberhard Kalbfleisch (Legal)
Vendor - Skadden Arps Slate Meagher & Flom, Dr Matthias Jaletzke, Dr Hanns Herwig (Legal); P + P Pöllath + Partners, Dr Andrea von Drygalski (Legal); Simpson Thacher, Michael Wolfson, Euan Gorrie, David Vann, Jr. (Legal)
Debt - Linklaters, Marc Trinkaus, Dr Ralph Drebes (Legal)