Cinven confirms Kurt Geiger takeover

European private equity firm Cinven has confirmed previous rumours that it is set to acquire leading UK footwear and accessories retailer from Sycamore Partners early Monday morning.

"We are delighted to be welcoming Cinven as our partners as they share our long term vision for the business,"said Neil Clifford, Chief Executive at Kurt Geiger. "Our ambitions are significant and we believe Kurt Geiger will continue its successful track record of delivering strong growth both domestically and on the international stage."

Sycamore Partners sells Kurt Geiger to Cinven for undisclosed sum

In an official statement, the firm announced it "has agreed to acquire Kurt Geiger from Sycamore Partners for an undisclosed sum." The announcement comes not long after The Financial Times speculated Kurt Geiger former owners sold the luxury footwear retailers for 245 million pounds, as the US private equity firm Sycamore Partners continues to split up the Jones Group, which it acquired in March 2014.

"Kurt Geiger represents an exciting opportunity to acquire the UK’s leading women’s footwear and accessories company with significant international growth and consolidation opportunities," said Maxim Crewe, Partner at Cinven. "The business enjoys an attractive specialist retail model with multiple brands and routes to market. It is led by a strong, experienced and committed management team and we are looking forward to working with them to achieve the next phase of growth under Cinven’s ownership."

Cinven revealed a number of reasons why they regard Kurt Geiger as a highly attractive investment opportunity, which include: further expansion opportunities in Asia and Australia; strong growth in the UK footwear market; Kurt Geiger's strong brand equity across a multiple brands and the potential to expand its brand offering into adjacent categories such as children's footwear.

Charles Miller-Jones, Senior Principal at Cinven, added: "Kurt Geiger has delivered strong growth through the cycle, whilst enjoying high cash conversion. Working together with management, we see real potential to develop further the omni-channel offering, as well as expand the business internationally."

Founded in 1963, in London, Kurt Geiger has grown to include a portfolio of attractive brands, including Carvela, KG, and Miss MG, and currently operates over 80 international stores around the world. Since it was acquired by the Jones Group in 2011, the luxury footwear retailer has proved to be a successful omni-channel business model, operating third party concessions department stores such as Harrods, Selfridges and House of Fraser.

Photo credit: Kurt Geiger