Pepe Jeans, one of the best-known premium jean brands in Spain, has once again attracted the interest of opportunistic private equity funds, this time via a EUR85m (US$109m) capital injection.
Late last week, Corporacion Financiera Alba and L Capital snapped up 27.9% of the retailer from Spanish investment company Torreal, which itself bought 40% of the brand from UK-based rival 3i in 2005.
Arta Capital (of Corporacion Alba) will buy 16.4% while L Capital will take 11.5% for EUR50m and EUR35m respectively. Torreal paid EUR50m for the stake in 2005.
Following the deal, Torreal will remain the largest investor with a 31% stake while Pepe’s management will hold 30%.
Arta and L Capital executives said they hope to consolidate Pepe’s lead in Europe where it already has stores in most major markets. They also hope to muscle the firm in the US, Latin America an Asia. The company generates 66% of turnover from foreign markets.
Pepe Jeans, which also owns the Hackett retail brand, employs 2,000 people.
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