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Kering Closes Deal to Offload Vertbaudet and Cyrillus

The French group is further exiting retail to focus on luxury and sports segments.

PARIS — Kering said Thursday that its Redcats division has concluded the deal to sell Vertbaudet and Cyrillus, its children and familiy brands, to Alpha Private Equity Fund 6 for an enterprise value of 119 million euros, or $152.5 million at current exchange.

Kering, previously PPR, had announced last January it was in exclusive negotiations with Alpha.

Assets still remaining in Redcats’ sprawling portfolio include La Redoute and Daxon, which the group expects to sell in the secondhalf of this year.

The French group had first announced plans to divest its Redcats division in 2009, but had to postpone the process in 2011 due to adverse market conditions caused by the European debt crisis, which stood in the way of potential buyers struggling to secure financing.

The group, which counts Gucci, Yves Saint Laurent, Bottega Veneta, Puma and Chinese jeweler Qeelin in its portfolio, is retail to focus on developing its apparel and accessories in the luxury and sports-lifestyle segments.