French luxury and sports-brand group, PPR, recently announced that its Redcats mail order unit had agreed to sell Scandinavian brands Ellos and Jotex, to Nordic Capital for $362 million. The transaction for Ellos, home shopping brand offering clothing and toys by mail-order, and Jotex, textile and decoration brand, should be completed within a few months.
Rothschild acted as the financial advisor to PPR in the deal, while Vintage acted as the legal advisor.
PPR is the parent company of high-end brands such as Gucci, Bottega Veneta, Yves Saint Laurent and Balenciaga, making sure they reach their full global growth potential. To achieve this, they constantly push the limits in the most imaginative and sustainable manner. In 2007 they acquired a share of Puma and sold Kadeos to the Accor group. PPR also sold YSL beauty to L’Oreal for 1.15 billion euros in 2008. PPR has been shedding parts of its Redcats business as it focuses on luxury and sports brands which have stronger growth prospects than retail.
Last month, there has been exclusive talk to sell children’s clothing brand, Cyrillus and Vertbaudet to Alpha Private Equity Fund for 119 million euros including debt. In December 2012, the company also agreed to sell its OneStopPlus large-size clothing business to two private-equity firms, Charlesbank Capital Partners and Webster Capital, for an enterprise value of $525 million.
PPR shares rose up to 0.9% to 172.4 euros in Paris trading and gained 0.4% as of 9:32 this morning.
By Pia Talwar