KKR acquires SMCP Group

Amy King
18 April 2013

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KKR has supported the management buyout of luxury apparel retailer SMCP Group, acquiring the firm from French private equity houses L Capital and Florac.

KKR has bought a 65% stake in SMCP, with the management team holding the balance. Earlier reports valued the deal at €650m.

Previous funding
In 2010, L Capital and Florac acquired 51% of fashion holding Group SMCP for an undisclosed amount. The newly created holding structure regrouped fashion brands Maje, Sandro and Claudie Pierlot. The three brands' founding shareholders and management retained 49% of the shares. A mezzanine tranche was provided by Indigo Capital.

Company
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 four brands: Sandro, Sandro Men, Maje and Claudie Pierlot.

The company has opened 69 retail outlets in North America over the last 18 months, alongside five stores in Hong Kong. The firm will open two stores in Shanghai in July, followed by a further four by the end of the year.

SMCP operates more than 570 points of sale and generated revenues of €350m in 2012. Around 150 new store openings are planned for 2013, primarily outside France.

People
Jacques Garaïalde is partner and managing director responsible for KKR's French operations. Eduardo Velasco, Philippe Franchet and Manal Saleh worked on the deal for L Capital, while Léopold Meyer, Olivier Golder and Gautier Preney represented Florac.

Advisers
Equity – Rothschild & Cie, Laurent Baril (Corporate finance); Bredin Prat, Sébastien Prat (Legal); Simpson Thacher & Bartlett (Legal); Landwell (Legal); McKinsey & Co (Legal); Roland Berger (Commercial due diligence); Deloitte (Corporate finance).
Vendors – JP Morgan, Séverin Brizay (Corporate finance); Leonardo & Co, Laurance Danon (Corporate finance); La Compagnie Financière Edmond de Rothschild (Corporate finance); SJ Berwin, Jérôme Jouhanneaud (Legal); DLA Piper, Michel Frieh (Legal); Shearman & Sterling, Guillaume Isaultier (Legal); KPMG, Axel Rebaudières, Vincent Delmas (Financial due diligence); Taj, Sophie Blegent-Delaphille, Olivier Venzal (Tax); Taj, Jérôme Gertler, Eric Hickel, Abdelmalik Douaoui (Legal); Oloryn Partners, Frédéric Jannin, Eric Lesieur (Financial due diligence).