PARIS — Continuing the piecemeal disposal of its retail assets, PPR said Thursday it is in exclusive negotiations to sell the children and family divisions of cataloguer Redcats to Alpha Private Equity Fund 6.
PPR said the talks peg the enterprise value of the Cyrillus and Vertbaudet businesses at 119 million euros, or $157.5 million at current exchange. Vertbaudet is a children’s brand that markets apparel and nursery items, while Cyrillus makes clothes and household linens for the whole family.
PPR noted the transaction should be finalized in the coming months, subject to approval by competition authorities and consultations with employee representatives.
Luxemburg-based Alpha targets medium-sized companies in France, Italy, Benelux and Switzerland, and has invested in retail and textile firms including Comptoir des Cotonniers, Basler and Tom Tailor. It has also held stakes in construction, media and pharmaceutical companies.
Last month, PPR concluded a sale of the U.S. assets of Redcats, selling the sports and leisure activities of its U.S. division to Northern Tool + Equipment for an enterprise value of $215 million. The Burnsville, Minn.-based retailer of tools and power equipment took control of online outdoor gear and clothing company The Sportsman’s Guide Inc. and online golf retailer The Golf Warehouse Inc.
PPR is exiting retail to focus on apparel and accessories in the luxury and sports-lifestyle segments. Last year, it revealed plans to demerge and float Fnac, a struggling retailer of books, music and home electronics.
Assets remaining in Redcats’ sprawling portfolio include La Redoute, Daxon and Swedish-based mail-order firm Ellos AB.
PPR’s stable of brands includes Gucci, Yves Saint Laurent, Balenciaga, Stella McCartney, Bottega Veneta, Puma, Volcom and its latest addition, the Chinese jeweler Qeelin.
The French group, helmed by François-Henri Pinault, has stated ambitions to triple the size of PPR’s core luxury and sport-lifestyle divisions by 2020 and increase revenues to 24 billion euros, or $31.76 billion at current exchange.