Stuart Weitzman and Kurt Geiger are now independent firms.
This story first appeared in the April 14, 2014 issue of WWD. Subscribe Today.
Private equity firm Sycamore Partners last week completed its $2.2 billion purchase of The Jones Group. Both Weitzman and Geiger were holdings under the Jones umbrella.
Jones acquired a majority stake in Weitzman in May 2010 for $180 million, and acquired the balance in August 2012. At the time of Jones’ initial stake in 2010, Weitzman had about $193 million in annual volume.
Geiger was acquired in June 2011 for $350 million. On a trailing 12-month basis ended April 30, 2011, Geiger had net revenues of $332 million.
As part of Jones’ acquisition, Sycamore retains a majority stake in each business, but the operations are set up as separate companies under Sycamore’s investment portfolio umbrella. Moreover, the setup now has existing management staying in place, with participation in their respective businesses.
In the case of the Weitzman business, executive chairman Stuart Weitzman and chief executive officer Wayne Kulkin will be working in partnership with Sycamore.
Weitzman said, “We are [pleased] to work with Sycamore Partners and are confident that this transaction will help fuel the continued momentum of the Stuart Weitzman brand as we enter our next phase of growth. Sycamore Partners has a history of supporting the visions of its portfolio companies, and we anticipate a long and successful partnership.”
Footwear retailer Kurt Geiger has completed a management led buyout with the support of Sycamore.
Neil Clifford, Geiger’s ceo, said, “We believe our company has tremendous potential for growth in the U.K. and internationally, and we will continue to invest in new opportunities alongside our department store and brand partners.”
According to Stefan Kaluzny, managing director of Sycamore, both firms have potential for long-term growth, and will have Sycamore’s assistance for a successful positioning.