Kurt Geiger snapped up in latest luxury goods takeover deal

KURT Geiger, the UK-based luxury shoe retailer, has been sold to fashion empire Jones Group in a deal which values it at £213 million.

The announcement yesterday is the latest in a string of takeover deals in the luxury brands market as global players look to strengthen their portfolios amid huge growth in demand from Asian markets.

Last month, iconic UK shoe designer Jimmy Choo was sold for a rumoured 550m to investment firm Labelux.

The sale of Kurt Geiger to New York-based Jones means London-based private equity firm Graphite Capital, which owned the majority stake in the business, has more than doubled its initial investment of 95m made to back a management buy-out in 2008.

Kurt Geiger was established in 1963 and now operates from more than 200 locations worldwide including 13 standalone stores or concession sites in Scotland.

The company has grown rapidly to become a leading retailer and distributor of luxury footwear and accessories, selling its own designs and more than 100 third-party brands from Gucci to UGG.

Despite depressed conditions on the high street, Kurt Geiger's latest financial results showed turnover increased by some 70 per cent to 205m in the year to April.

Neil Clifford, who will continue as Kurt Geiger chief executive following the sale, said: "The company is still relatively young in terms of growth profile, with great potential still to be fulfilled.

"We have developed a strong relationship with Jones which has a clear track record of supporting and growing its brands, and we are confident that we have found the right strategic partner to help evolve our business."

Jones, which owns fashion brands including Nine West, said Kurt Geiger will now serve as its hub in Europe.

Wesley Card, chief executive of Jones, said: "This transaction is about pursuing opportunities to optimise our portfolio and establishing a strong foothold in Europe.

"The addition of Kurt Geiger is consistent with our strategy of identifying companies with best-in-class talent and proven brands that have the potential for substantial growth. We have the utmost respect for Neil and have got to know the team well over the years as our distribution partner for Nine West in the UK."

Jones was rumoured to be one of the bidders for Jimmy Choo which was eventually sold to Vienna-based Labelux which also owns shoe brand Bally and UK jeweller Solange Azagury-Partridge.

Jimmy Choo's previous owner TowerBrook, a private equity group which is based in the UK and US, made more than three times its initial equity investment on the deal.