Bimba y Lola: Permira the most likely buyer?
Investment fund Permira is reportedly considering the acquisition of Spanish women’s ready-to-wear label Bimba y Lola. According to Spanish newspaper El Confidencial, the investment fund - notably the owner of Dr. Martens - which sold its stake in Spanish retail group Cortefiel last July, has put forward an acquisition tender in the region of €400 million. El Confidencial reported that Permira’s offer is slightly higher than that made by the Carlyle investment fund, another potential buyer.
Tasked with finding a new owner for Bimba y Lola, investment bank Morgan Stanley began to approach international private equity firms last February.
According to the Spanish press, the accessible luxury label is keen to attract investors such as Bain Capital, PAI, Permira, CVC, Carlyle and TowerBrook, offering them a 70% stake in the company, notably with the condition that Bimba y Lola founders María and Uxía Domínguez will remain on board.
Should the deal go through, the operation would value Bimba y Lola at €450 million, a figure regarded as too high by Morgan Stanley, wrote El Confidencial.
Nevertheless, the label needs finance to support its expansion. In the last few years, Bimba y Lola grew at a faster clip, notably outside Spain, though its international business still reportedly accounts for 26% of sales only.
The label operates 222 retail outlets altogether in about 20 countries, between department store concessions and monobrand stores.
In the 2016/2017 financial year, Bimba y Lola reported a revenue of €152.4 million, up 31.7%.
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