Running in heels: Luxury is still in fashion as Jimmy Choo is sold for

23rd May 2011

As predicted on Mindful Money earlier this year, take overs appear to have become fashionable again.

The luxury shoe brand Jimmy Choo, co-founded by socialite Tamara Mellon and the Hackney cobbler, has been sold to Labelux.

As reported on The Guardian website,  the luxury goods group backed by Germany's billionaire Reimann family has bought the A-list lable for nearly three times the sum paid by its private equity owners TowerBrook Capital Partners four years ago.

"Mellon, a recently-appointed government trade envoy started the company with Choo in 1996 with a £150,000 loan from her late father Tommy Yeardye who co-founded the Vidal Sassoon hair products empire"

Choo sold his interest in the company that bears his name in 2001 but Mellon stayed aboard and her personal fortune is today put at £150m."

Labelux's other investments include Swiss luxury brand Bally and the Derek Lam fashion label. Its chief executive Reinhard Mieck said it saw "substantial potential" for the brand, particularly in Asia.

The Telegraph reports that another bidder, private equity firm TPG, is understood to have fallen out of the race after its bid valued the group below £500m.

Private equity rival Investcorp was also involved in the final round. The pending sale comes nine months after TowerBrook appointed Goldman Sachs and Morgan Stanley to advise on its options.

On The Telegraph TheBoggart comments: "This deal just goes to show you the value of intellectual property, especially trademarks."

Twitter user @kelly_brice tweeted "Luxury market expected to grow annually by 6.2% as Jimmy Choo is bought by Labelux for £500m – #whatrecession?!"

 

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