Cinven, the British private equity investment company that bought Kurt Geiger in 2015 for £245 million (€278.7m-$311.3m), has held informal talks with new investors based in the U.S. to sell the British shoe retail chain, according to The Telegraph. The British daily newspaper named potential buyers like Steve Madden, Capri Holdings and Tapestry.
The company could fetch a valuation of more than £450 million (€512.0m-$571.7m), according to reports, partly because of its potential in the U.S. Neil Clifford, the chief executive of Kurt Geiger, said that it ultimately wants to have an international business as big as its U.K. operations.
Cinven acquired Kurt Geiger in 2015 from the private equity firm Sycamore Partners as part of a leverage management buyout in which Clifford participated. Sycamore bought it from the former Jones Group, which also owned Nine West, but did not do much to expand Kurt Geiger's presence in the U.S. market.
The company was in the hands of Mohamed Fayed, the owner of Harrods, until 2005, when it was sold to Barclays' private equity arm for £46 million (€52.3m-$58.4m). Its increase in value over the years reflects its improving results.
According to its latest available results, Kurt Geiger posted growth of 4 percent in revenues on a comparable basis to £324.6 million (€369.3m-$412.4m) for the year ended on Jan. 27, 2018, generating Ebitda of £24.6 million (€28.0m-$31.3m).
Kurt Geiger operates more than 80 stores in 20 countries plus 240 concessions in stores in the U.K. and overseas, including the Harrods and Selfridges department stores in London. The firm has a broad range of products across different price levels. The higher-end Kurt Geiger brand is complemented by a more affordable Carvela and Miss KG lines