KKR's SMCP valued at €1.5bn in IPO

The listing saw around 73 million shares (approximately 33.1% of the company's total share capital) put in free float by investors European Topsoho, indirectly controlled by Shandong Ruyi Technology Group, and KKR, alongside current and former management and board members. Shares were priced at €22.

The shares sold by existing shareholders amounted to €414m. European Topsoho and KKR respectively sold €261m and €148m worth of shares. Managers of the group sold shares worth €5.9m.

This amount may be increased up to €496m, increasing SMCP’s free float to a maximum of 38.1%, assuming the full exercise of the greenshoe option.

As part of the IPO, SMCP raised €127m by issuing new shares.

The first trading day of SMCP shares on Euronext Paris should take place on 24 October.

Previous funding
In April 2016, KKR sold SMCP to China's Shandong Ruyi Technology Group but retained a minority shareholding in the group, as did SMCP's founders and management team.

Shandong's offer valued SMCP at around €1.3bn, or more than 11x the group's EBITDA. One of China's largest textile manufacturers, Shandong intended to drive SMCP's international expansion, while maintaining the brands' independence and Paris headquarters.

KKR previously supported the management buyout of SMCP in May 2013, acquiring the firm from French private equity houses L Capital and Florac. The 2013 buyout saw KKR secure a 65% stake in SMCP, with the management team holding the balance; the deal was valued at €650m.

Company
Paris-based SMCP was founded in 2010 at the time of the L Capital and Florac buyout. The group operates in the affordable luxury apparel segment across three brands: Sandro, Maje and Claudie Pierlot. SMCP has roughly doubled in size over the course of KKR's three-year ownership from 2013 to 2016. In 2016 it operated 1,118 points of sale (against 570 in 2013) and generated revenues of €675m in 2015, up from €350m in 2012.

People
SMCP - Daniel Lalonde (CEO).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Exits
• France
• Consumer
• France
• KKR
• IPO