Dutch lingerie firm Hunkemoller attracts private equity interest – sources

FRANKFURT, July 9 Dutch lingerie maker
Hunkemoller has caught the eye of several private equity groups
in a potential deal worth roughly 500 million euros ($553
million), three sources familiar with the matter said on
Thursday.

Carlyle, CVC and Apax are expected to hand in final bids
later this month for the group, which employs Dutch model and TV
personality Sylvie Meis in its marketing and has over 600 stores
in 16 countries from Spain to Saudi Arabia.

Hunkemoller has earnings before interest, taxes,
depreciation and amortization of about 50 million euros and any
buyout could be backed with around 300-350 mln of debt
financing, the people said.

Listed retail fashion companies such as HM,
Inditex, Next, Marks and Spencer and
Esprit trade at an average of 11 times their expected
core earnings. Hunkemoller’s private equity owner PAI hopes to
sell at a similar multiple, one of the people said.

PAI put the retailer, which began as a corset shop in
Amsterdam in 1886 and is now the largest high-street lingerie
brand in the Benelux region, up for sale earlier this year and
tasked JP Morgan with organising an auction.

Although the brand with products like the “Diva” and “Candy”
bras is based in the Netherlands it makes about half of its
sales in Germany where it is the largest lingerie chain with 185
stores as of February 2014.

PAI bought Hunkemoller in 2011 for 265 million euros. In a
2014 company report, Chief Executive Philip Mountford said the
chain was a 400 million-euro business.

The brand has been expanding aggressively, with its chief
focus on Germany, Austria and Sweden, and is planning forays
into Asia. Sales have grown around 10 percent each year since
PAI’s investment in 2011.

Carlyle, Apax and PAI declined to comment, while CVC was not
immediately available for comment.
($1 = 0.9046 euros)

(Reporting by Arno Schuetze and Claire Ruckin; Editing by
Edward Taylor)

Share and Enjoy