TowerBrook steps away with 3x on Jimmy Choo

The protracted sale of shoe company Jimmy Choo has reached a lucrative, £500m conclusion for owner TowerBrook Capital.

TowerBrook Capital Partners has confirmed that Labelux has won the hotly-contest for Jimmy Choo. Labelux is understood to have outbid TPG Capital and Investcorp, as well as US retailer Jones Group. The firm began considering exit options for the business in August last year, formerly appointing banks to conduct a strategic review in September, according to a source close to the firm.

A source close to the situation said the successful bid exceeded £500 million. That represents a more than 3x return for TowerBrook, the source said. An initial public offering of the business on the Hong Kong stock exchange had also been considered, according to reports.

Labelux will be the first non-private equity owner of the company in a decade. Buyout firm Phoenix Equity Partners invested about £9 million in the company in 2001, before selling to Lion Capital in 2004. TowerBrook and Spanish venture capital firm Gala then acquired the business in 2007 for £185 million.

Rothschild was financial advisor to Labelux, with Hogan Lovells and KPMG providing legal advice and due diligence respectively. Goldman Sachs and Morgan Stanley advised TowerBrook, with Kirkland & Ellis handling the legal side of the sale.

Jimmy Choo’s co-founder and chief creative officer Tamara Mellon has re-invested in the company following the sale and retains a 15 percent stake in the business. Chief executive Joshua Schulman has also reinvested in the company.

Jimmy Choo reported net sales of£150 million last year. It is currently enjoying “double digit growth across all categories and geographies,” according to a statement.

Ramez Sousou, co-chief executive of TowerBrook, said: “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.”