London—Labelux, the Vienna-based luxurygoods company that owns Bally, won the bid to acquire high-end footwear and leathergoods brand Jimmy Choo from Towerbrook Capital Partners for a reported 500 million pounds (about $811 million).
As part of the deal, Jimmy Choo’s founder and chief creative officer Tamara Mellon and CEO Joshua Schulman and other senior management are making an investment in the Labelux subsidiary established to own the company.
Expansion in Asia Planned
News of the sales follows weeks of speculation about who would win the bidding war for the iconic shoe brand. Labelux Group was supposedly one of three bidders. The others included TPG Capital and Jones Group, Inc., whose brands include Nine West and Stuart Weitzman. LVMH also purportedly was interested in a bid as was Jimmy Choo himself, who sold off his part of the company in 2001.
TowerBrook Capital Partners, which bought Jimmy Choo in 2007 for 185 million pounds and expanded the company into a global brand also considered a 650 million-pound Hong Kong listing for Jimmy Choo, according to reports in British newspapers.
Labelux, founded by Germany’s billionaire Reimann family in 2007, identified synergies between Jimmy Choo and its existing portfolio, which includes Swiss luxury brand Bally, acquired in 2008, New York-based apparel label Derek Lam, London-based jeweler Solange Azagury-Partridge and Italian accessories brand Zagliani.
The company is part of the family’s Joh A. Benckiser SE, which also owns perfume maker Coty Inc. and a stake of 16% in Reckitt Benckiser, the world’s largest maker of household cleaners.
Reinhard Mieck, Labelux’ ceo said: “We are delighted to announce this acquisition. Jimmy Choo is an outstanding brand with enormous growth potential and the ability to deliver material growth synergies across our group. Tamara, Josh and the team have created a world-class, customer-oriented business. We welcome them to the Labelux stable and look forward to working with them to ensure Jimmy Choo’s continuing success.”
The transaction is expected to complete at the end of June
Ramez Sousou, co-ceo of TowerBrook, said: “Since acquiring Jimmy Choo in 2007, we have enjoyed partnering with Tamara and Joshua in developing Jimmy Choo into one of the most prominent luxury brands in the world. Jimmy Choo has expanded from 60 stores to an international footprint of 120 sites and substantial potential awaits the Jimmy Choo brand, particularly in Asia, where Labelux has a proven track record.”