Baring Asia acquires control of Cath Kidston

Cath Kidston’s Chinese financial backers Baring Private Equity Asia have acquired the equity stake of TA Associates, the US private equity company, to become the controlling majority shareholder of the retail brand.

Baring Asia, one of the largest and most established independent private equity firms in Asia, has been a shareholder in Cath Kidston Group since July 2014 when it acquired a minority stake from TA Associates. The controlling acquisition comes as Cath Kidson has become successful in expanding across Asia, with the brand’s products now being sold in 15 countries across Asia and the Middle East.

Since Baring Asia’s initial investment in 2014, the number of Asian stores has increased from 91 to 133. Currently, 70 percent of Cath Kidston 226 stores are located outside of the UK.

As part of the deal, Paul Mason is stepping down as chairman after six years. He is to be replaced by William Flanz, former chief executive and chairman of Gucci, and a senior advisor to Baring Asia since 2003.

TA Associates, which first invested in Cath Kidston Group in 2010, will no longer hold a shareholding in the brand.

Commenting on the news, Cath Kidston chief executive, Kenny Wilson, said: “We are entering a really exciting new stage under a single owner. Baring Asia’s decision to increase its shareholding is a fantastic endorsement of the potential of the Cath Kidston brand and I would like to welcome Bill Flanz.

“When Baring first invested just over two years ago we said we wanted to find the right partner to help us manage the development of the brand in Asia and exploit its full potential, and Baring has been invaluable in helping us do this.”

Baring Asia buys out TA Associates to become majority shareholder of Cath Kidston

Wilson added: “This year has been our most successful start to the year, proving the strength of our product and the continued and growing appeal of the brand to existing and new customers. As well as expanding internationally, we continue to innovate as demonstrated by our new collaboration with Disney, which lands in stores this month. We are very excited about the future.”

William Flanz, Cath Kidston Group’s incoming Chairman commented: “We are delighted to begin a new chapter with Cath Kidston by acquiring a controlling stake in the business. Paul and TA Associates have provided great support to the Company over the years. Their input has been very valuable and we have truly enjoyed the partnership since our initial investment, but are now looking forward to driving the company forward as the majority owner.

“We believe the Cath Kidston brand and business have great potential to grow across the globe, and are committed to delivering on that potential and securing the longer-term success of the company.”

Cath Kidston was founded in 1993 with a single shop in London’s Holland Park, it has grown into a global lifestyle brand with stores in 19 countries including France, Hong Kong, Indonesia, Philippines, Japan, Korea, Malaysia, Singapore, Spain, Taiwan, Thailand and the UK. In January 2015, the brand opened its first store in the Middle East in Saudi Arabia and now operates a further 15 stores across the region, with its first stores set to open in India this Autumn in Delhi.

Images: courtesy of Cath Kidston