LBO France in exclusive talks to acquire IKKS

José Rojo
09 April 2015

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Buyout firm LBO France has entered into exclusive negotiations to acquire a majority stake in French luxury fashion business IKKS Group, following an unsuccessful auction process for the company in 2014.

Although LBO declined to comment on the value of the transaction, market sources place enterprise value between €500-600m.

According to these same sources, the buyout firm is aiming for a majority stake in IKKS. Meanwhile, founder Roger Zannier will invest significantly alongside LBO France and retain a minority stake.

The deal is expected to involve a portable high-yield bond put in place by Roger Zannier in 2014. He acquired IKKS Group from then-parent Groupe Zannier following an unresolved auction process for the company last year, according to LBO France.

The buyout firm then approached the group's founder and entered exclusive, off-market negotiations regarding its acquisition.

LBO France's interest in IKKS stems from the group's consolidated position in the accessible luxury segment of the French textile market, with turnover of €300m in 2014 and a 5% annual growth rate.

LBO's plan is to push IKKS' growth within the Paris region and reinforce its presence abroad. The company already does business in Belgium, Luxembourg and Spain and is looking to expand into Italy and further into Germany, where two shops are already in place.

The investment would be the second for the White Knight IX fund. Launched in May 2013, the vehicle has a €1bn target and a €1.5bn hardcap and seeks French companies with the potential to expand internationally, according to unquote" data.