KKR to Partner with Management to Acquire SMCP Group

KKR is investing in SMCP Group to drive further growth under strong leadership of current management team and to create a global leader in affordable luxury

PARIS & LONDON–(BUSINESS WIRE)– Kohlberg Kravis Roberts & Co. LP (together with its affiliates, “KKR“) and SMCP Group (Sandro, Maje and Claudie Pierlot) (“SMCP” or “the Company”), a leading ready-to-wear affordable luxury apparel retailer, today announced that KKR signed a definitive agreement with SMCP‘s current shareholders to acquire a majority stake in the Company alongside its management team. KKR will own approximately 65% of the Company’s share capital with management retaining approximately 35%. The agreement remains subject to regulatory approvals and customary closing conditions.

“I have created this beautiful family history with my sister, Judith Milgrom, and I am pleased to embark on a new phase of our lives with KKR. Alongside Elie Kouby and Frédéric Biousse, Judith and I are reaffirming our full commitment to the business and have great ambitions for the group: building a global leader in the affordable luxury segment”, said Evelyne Chétrite, President of SMCP Group.

“We are excited to partner with KKR“, added Frédéric Biousse, the CEO of SMCP Group. “We are proud of the Company’s strong development over the recent years and would like to thank our shareholders L Capital and Florac for their support. We look forward to working with KKR as we accelerate the international expansion of our brands, particularly in the United States and Asia. KKR‘s global presence and extensive experience and track-record in the international retail sector will be important assets in helping us continue our growth trajectory”.

Jacques Garaïalde, Partner and Managing Director in charge of KKR‘s French operations, added, “SMCP is a remarkable business with an outstanding management team. The Company has developed strong French brands with international appeal, and high quality products at affordable prices that meet the needs of consumers around the world. We are pleased to support the team in their growth strategy”.

Over the past five years, the Company has experienced significant growth driven by a combination of like-for-like growth and new store openings across its four brands: Sandro, Sandro Men, Maje and Claudie Pierlot. Today, the Company has established a leading position in the French affordable luxury segment and a fast-growing international business with strong positions in Europe and a growing presence in the USA and more recently Asia. SMCP operates more than 570 points of

From: http://www.dailyfinance.com/2013/04/18/kkr-to-partner-with-management-to-acquire-smcp-gro/