Alpha to sell Cyrillus to Alandia, MGA

Cyrillus is part of the Cyrillus-Vertbaudet group, but this sale only seems to include the Cyrillus business.

The two companies differ for distribution channels and market share, with Cyrillus dedicated to a higher-end segment of the market and generating only 40% of its sales online, and Vertbaudet targeting the lower end of the market, and generating more than 70% of its revenues through the online channel.

Alpha initially tried to sell Cyrillus alone in 2018, when it hired Transaction R to run the process. The sale was eventually pulled because offers did not meet the vendor's expectations, according to Unquote sister publication Mergermarket.

More recently, Alpha mandated Canaccord Genuity to advise on the sale of the entire group, marketing the company at a valuation based on its 2019 EBITDA of €18m, according to press reports. Bids for the sale were expected to be submitted by the end of March, but the process was delayed following the pandemic outbreak, according to Mergermarket.

The deal would end an 11-year holding period for Alpha, which bought the company from Kering, at the time known as PPR, for €119m. The GP invested in the business via its €700m vehicle Alpha Private Equity Fund 6.

Cyrillus-Vertbaudet designs and distributes products primarily dedicated to children, including clothing, accessories, nursery equipment, furniture and toys. It also offers a line of clothing, shoes and accessories for women and men.

Cyrillus's products are distributed through a network of 70 stores located in France, Benelux and Switzerland.

Vertbaudet's online channel accounts for most of the company's revenues and is supplemented by a network of 80 stores located in selected areas.

The combined group generates annual turnover of around €400m.

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• Topics
• Exits
• Buyouts
• France
• Consumer
• Alpha Private Equity
• France