Jimmy Choo confirms plans for London IPO as owner JAB approves sale

Owner JAB Holdings (the investment vehicle of Germany’s Reimann family which also owns Coty, Benckiser) is seeking to sell at least 25 percent of luxury shoemaker Jimmy Choo, aiming for an IPO at the end of October. The company is seeking a valuation of about US$1 billion, people familiar with the situation have previously told Bloomberg News, asking not to be identified because it was confidential.

“The market is difficult for some companies that have been in China for a long time,” Jimmy Choo Chief Executive Officer Pierre Denis said on a call with reporters. “There are still opportunities for specialist brands.”

Jimmy Choo, which was acquired by private-equity investors three times before being bought by JAB for more than 500 million pounds (US$818 million) in 2011, sells women’s and men’s shoes, handbags, accessories (eyewear, jewellery) and fragrances in more than 100 stores worldwide.

Jimmy Choo’s adjusted earnings before interest, taxes, depreciation and amortization rose about 1.7 percent to 46.9 million pounds in 2013 as revenue rose 16 percent to 281.5 million pounds. First-half year (2014) sales growth slowed to 2.2 percent on a like-for-like basis compared with last year’s 7.1 percent pace and its adjusted Ebitda was 27.6 million pounds.

JAB reorganized its business in June, bringing brands including Jimmy Choo, Bally and Belstaff under direct management in a move it said reflected an increasing commitment to luxury goods. All three brands were under the umbrella of Labelux Group based in Vienna, also directly owned by the Reimann family.

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