KKR sponsors MBO of French luxury apparel retailer SMCP

US private equity major KKR & Co LP (NYSE:KKR) said on Thursday it had agreed to take over French ready-to-wear luxury apparel retailer SMCP Group together with the target’s management.

The deal, whose financial details were not disclosed, will see KKR holding some 65% in SMCP, with the management retaining the balance. The definitive agreement was signed with the target’s current shareholders L Capital and Florac.

SMCP, with over 570 points of sale, generated revenues of EUR350m (USD457m) last year. The company plans to open around 150 new stores in 2013, mainly outside France. Its portfolio includes store brands Sandro, Sandro Men, Maje and Claudie Pierlot.

KKR pledged to support its further growth, the buyer said. For its part SMCP is confident that KKR’s global presence and vast experience in the international retail sector will help its strategy for global expansion, with focus on the US and Asia, it said.

Completion is subject to regulatory approvals.

KKR used Rothschild & Cie as advisor, while SMCP Group took counsel from JPMorgan Chase & Co (NYSE:JPM) and Leonardo & Co.