CVC launches €1.4bn retail takeover

The European private equity firm has launched a €1.4bn agreed takeover bid for Spanish clothing retailer Cortefiel on top of its bid for cable and wireless group Auna.

Pan-European buyout house CVC Capital Partners has announced that it has offered to pay €1.4 billion ($1.8 billion) for Spanish clothing retailer Cortefiel.

CVC has reportedly negotiated an undisclosed break-up fee should the transaction not proceed.

The takeover bid has been agreed by the company’s main shareholders, the Hinojos and Garcia-Quiros families, which have agreed to tender their 55.7 percent shareholding.

The offer of €17.90 per share is open for 45 days and is conditional upon acceptance from 75 percent of the company’s shareholders. CVC has reportedly negotiated an undisclosed break-up fee should the transaction not proceed.

Cortefiel operates 1,100 retail outlets in 37 countries and generated a profit of €62 million on sales of €970 million in the year ending in February.

CVC is one of ten private equity firms currently bidding for Spanish telecommunications group Auna, valued at around €12.5 billion. CVC has joined forces with Apax Partners and Cinven to bid for the whole group, ranged against a group comprising KKR, BC Partners and Goldman Sachs.

Another consortium made up of Blackstone, Carlyle, Permira and Providence Equity Partners is reportedly preparing separate bids for Auna’s mobile telephone arm and its cable assets.

CVC has been particularly active in the Spanish market recently. The firm disposed of its stake in Spain’s electricity grid for €739 million in February and sold car inspection group Itevelesa to Apax Partners and Vista Capital for $310 million in November.

In April, the firm completed the largest secondary buyout in Spanish history, acquiring metal packaging firm Mivisa from PAI Partners and Suala Capital for €527 million.