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UPDATE 1-PPR to sell Redcats units to Nordic Capital
February 25, 2013 / 8:26 AM / 5 years ago

UPDATE 1-PPR to sell Redcats units to Nordic Capital

* Deal has enterprise value of 275 mln eur

* Sale to be completed in the coming months (Adds background, advisors, PPR comment, share price)

PARIS, Feb 25 (Reuters) - French luxury and sports-brand group PPR said on Monday its Redcats mail order unit had agreed to sell Scandinavian brands Ellos and Jotex to Nordic Capital for an enterprise value of 275 million euros ($362 million).

The sale of home shopping brand Ellos and textile and decoration brand Jotex to the private equity fund should be completed in the coming months, PPR said in a statement.

Nordic Capital “has solid experience in Nordic retail,” PPR said, adding that “it encourages businesses to grow by expansion into new markets, product development, new industrial combinations, strategic repositioning and internationalisation”.

PPR, parent company of high-end brands including Gucci, Bottega Veneta and Yves Saint Laurent, has been shedding parts of its Redcats business as it focuses on luxury and sports brands which have stronger growth prospects than retail.

The latest deal follows the announcement last month that it was in exclusive talks to sell Cyrillus and Vertbaudet children’s clothing brands to Alpha Private Equity Fund for 119 million euros including debt.

Last year, it also agreed to sell its U.S. plus-size fashion business OneStopPlus Group to private equity group Charlesbank Capital Partners and Webster Capital as well as its U.S sports and leisure business to retailer Northern Tool + Equipment.

Shares in PPR were up 0.5 percent at 172.4 euros in early trading, lagging a 0.9 percent firmer French blue-chip CAC 40 index.

Rothschild acted as financial advisor to PPR in the deal, while Vinge acted as legal advisor. ($1 = 0.7598 euros) (Reporting by Alice Cannet; Editing by James Regan)

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