PPR, U.S. private equity firm talk on Redcats: sources
NEW YORK (Reuters) - The Redcats mail order unit of French retail and luxury group PPR SA (PRTP.PA) is in late-stage talks to sell its plus-size fashion business to Boston-based private equity firm Charlesbank, according to four sources.
The deal for OneStopPlus will likely be between $400 million and $500 million, the sources said.
Earlier this month, PPR's Redcats unit sold its U.S. sports and leisure business, Sportsman's Guide Inc, as well as its Golf Warehouse business, to retailer Northern Tool + Equipment for $215 million.
The deal follows last month's announcement of plans to spin off PPR's Fnac music and book unit and last year's sale of the Conforama furniture unit.
Last year, PPR hired Rothschild to sell off its entire Redcats business, but there was no buyer. Now, the parent company of high-end brands including Gucci, Bottega Veneta and Yves Saint Laurent is looking to unload the unit in pieces.
PPR, the world's third-largest luxury group behind LVMH (LVMH.PA) and Switzerland's Richemont, has been trying to unload its various retail businesses for several years in order to focus on luxury and sports brands which have stronger growth prospects.
Peter J. Solomon Co, which sources said is advising PPR on the process, declined to comment.
PPR, Charlesbank and Rothschild also declined to comment.
(Reporting by Olivia Oran in New York, additional reporting by Pascale Denis in Paris; editing by Gerald E. McCormick, Maureen Bavdek and Matthew Lewis)