Luxury shoemaker Jimmy Choo seeks to sell itself

24 Apr 2017

British luxury shoe maker Jimmy Choo today said that it has decided to conduct a strategic review to maximize shareholder value, for which it is seeking offers for the company to be acquired.

Jimmy Choo has discussed the strategic review process with its majority shareholder, JAB Luxury, which is supportive of the process.

''The UK Takeover Panel has agreed that any discussions with third parties may be conducted within the context of a "formal sale process" to enable conversations with parties interested in making a proposal to take place on a confidential basis,'' it said in a statement.

Jimmy Choo, which is being advised by BofA Merrill Lynch and Citigroup, said it is currently not in receipt of any approaches.

JAB Luxury, which owns 68 per cent of Jimmy Choo, said there was "no certainty that a sale of all or any of JAB Luxury's shareholding in Jimmy Choo will take place, nor as to the terms on which any such transaction may take place".

Jimmy Choo was founded in 1996 by London-based Malaysian fashion designer Jimmy Choo and Tamara Mellon, the accessories editor of British magazine Vogue .

Jimmy Choo sells women's and men's shoes, handbags and accessories through 167 stores in 35 countries.

The Jimmy Choo brand became famous due to the patronage of celebrities like late Princess Diana from 1990 and later by the likes of Oprah Winfrey, former US first lady Michelle Obama, Jennifer Lopez and Bella Hadi.

Choo sold his 50-per cent stake in the company for £10 million in 2001 to private equity firm Lion Capital, while Mellon continued to run the company as chief creative officer.

JAB Luxury, owned by Germany's Reimann family, which also owns perfume maker Coty Inc, and a 16-per cent stake in Reckitt Benckiser, had acquired its stake in Jimmy Choo in 2014 for over £500 million ($811 million) from private equity firm TowerBrook Capital. (See: Germany's Labelux buys upscale shoemaker Jimmy Choo for $811 million)

The company was listed on the UK stock market in 2014 and its shares had gained over 20 per cent this year, giving it a market value of £670 million.

In March, Jimmy Choo reported record revenues and profits thanks to a boost from the Brexit-hit pound and strong Asian sales.

The firm's annual revenues shot 15 per cent to £364 million in the year to the end of December, while earnings increased 16 per cent to £59 million over the period.

Jimmy Choo, which had a market capitalisation of around £650 million, is expected to attract the attention of rival luxury houses and Chinese, Middle Eastern and Russian buyers.