Cinven acquires German fashion chain

London-based private equity firm Cinven has acquired CBR, the German fashion group, for an undisclosed sum.

Cinven, the London-based European private equity provider, has acquired German fashion group CBR Holding (CBR). The purchase price has not been disclosed, but was understood to be around €1 billion.  

CBR, whose brands include StreetOne, Cecil and One Touch, claims to be one of the fastest growing ladies’ clothing companies in Germany. The business has more than 700 employees, 600 franchise stores and more than 4,000 trading partners. It says it is expecting sales of more than €500 million in 2004.

“CBR is one of the most rapidly growing fashion groups in Europe, demonstrating a successful business model and substantial growth potential for the future,” said Peter Gangsted, partner at Cinven and head of the Frankfurt office. “We will actively support the management, employees and business partners of CBR in driving the established expansion strategy.”

Cinven said the transaction had been financed with equity funding from the €4.4 billion third Cinven fund. In addition, debt finance has been arranged by a consortium comprising HypoVereinsbank and Royal Bank of Scotland.

Cinven was advised by Deutsche Bank on the deal, which is subject to the approval of the EU monopolies authorities.

The third Cinven fund, which closed on €4.4 billion in April 2002, has made a number of recent investments including: VNU World Directories (€2.1 billion), Gala Group (€1.9 billion) and Springer (€1.6 billion).