Ganni sponsor L Catterton appoints Lazard to explore sale

Barbara Pianese, Fabian Graber, Karin Jensen, Gustav Hoejmark-Jensen
11 April 2022

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Ganni sponsor L Catterton has appointed Lazard to explore a sale, two sources familiar with the situation said.

The auction has not kicked off yet, one of the sources and two more sources familiar with the situation said, with one of them adding the sale could be delayed on the back of Russia's invasion of Ukraine. A fifth source familiar said the process is expected to launch in 2H22.

L Catterton decided to consider a sale after receiving inbound interest from undisclosed parties, one of the sources said.

Revenues at the Danish fashion house exceed EUR 100m, one of the sources said, with another one adding they are approaching EUR 200m. Ganni FY20 revenues stood at DKK 500m (EUR 67.2m) but has since seen strong growth, another source said. "The company has seen tremendous growth across all channels," another one of the sources agreed.

Ganni is described in L Catterton's website as one of the fastest growing contemporary fashion brands in the global affordable luxury womenswear market.

A private equity house that can further grow the brand makes sense as a buyer, one of the sources and a sector lawyer said. Sponsors active in the space that might look include Altor, which owns a minority stake in Swedish fashion label Toteme; and Italy-based Style Capital, although it is focused on more high-end fashion, the lawyer said. The latter has invested in fashion houses including LuisaViaRoma, an Italian high-end online fashion retailer, and Australia-based luxury fashion business Zimmermann.

A fashion house looking to add another clothes brand to its portfolio cannot be ruled out, one of the sources said. When L Catterton took over Ganni, the US market was seen as a key growth driver, this source said. If the sponsor has managed to achieve further growth in the US, then it may attract a US-based fashion house, this source added.

L Catterton acquired a 51% stake in Ganni in 2017 for a consideration of DKK 255m (EUR 34.2m).

Founded in 2000, Ganni has established an international presence through its owned stores and more than 400 premium retailers in 20 countries, including Denmark, Norway, Sweden, the UK, Germany, and the U.S, as per the sponsor's website.

Ganni and L Catterton declined to comment. Lazard did not respond to requests for comment.