Cortefiel purchased by investment firms PAI and CVC
Investment firms PAI Partners and CVC have agreed to purchase a majority stake in the Cortefiel group (33% of total capital) from current shareholder Permira. The specialist Spanish clothing group will now be conjointly owned by the two firms at the close of the deal.
"We are delighted that CVC and PAI have reaffirmed their support for Cortefiel, demonstrating their involvement in the company and its employees," said Jaume Miquel, chief executive of the group.
Investors in Cortefiel since 2005, PAI and CVC will each own 50% of the Madrid-based firm, according to a source close to the deal. In a press release, the group said the deal values Cortefiel at 1 billion euros and will allow it to reduce its debt; a figure which has climbed to 895 million euros. The debt has the potential to be slashed by 40%, according to source cited by Reuters.
The group, which owns the brands Cortefiel, Springfield, Women’Secret, Pedro del Hierro and Fifty Factory, opened its debut store in India on July 7. Total sales increased 3.1% to 1.13 billion euros during last fiscal year, ending February 28.
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