Wall Street Journal
By Marietta Cauchi
U.S. buyout firm TPG confirmed Monday that it is bidding for upmarket shoe retailer Jimmy Choo, but it denied published reports that it is talks with the founder of the eponymous company himself about a possible joint bid.
TPG is one of three bidders for the retail group, people familiar have said. The other two bids are from U.S. apparel retailer Jones Group Inc., whose brands include Nine West and Jones New York; and Bahrain-based Investcorp, which is working on a joint bid with German luxury company Labelux Group, the people familiar said.
TPG declined to provide further information about its bid. But it denied a published report that it was in talks with Jimmy Choo himself on a joint bid.
Jimmy Choo is being sold by owner TowerBrook Capital, which bought the shoe retailer for £180 million ($297 million) from Lion Capital in February 2007. It is the lead investor and together with its affiliates and co-investors controls 83% of the company. Tamara Mellon, who helped set up the business, retains a 17% stake.
Reports suggest Jimmy Choo is valued at between £400 million and £500 million.
As with all current luxury deals, the driver behind an acquisition will be to expand the Jimmy Choo brand in Asia, particularly in China, which is the key engine for growth in the region. There is also the opportunity to extend the Jimmy Choo brand to men's shoes as well as to boost sales of handbags.
Labelux may find the push into Asia more difficult because it already owns the competing Bally brand, which it bought from TPG in 2008, people said.
Morgan Stanley and Goldman Sachs are running the sale process and next bids are due in mid-May.
