L Catterton, backed by LVMH, has agreed to acquire Hammerson’s 42% stake in Value Retail for an enterprise value of £1.5bn.
- Value Retail’s portfolio includes renowned shopping destinations like Bicester Village and centres in major European cities.
- The sale to Silver Bidco will generate approximately £600m in proceeds for Hammerson.
- Rita-Rose Gagné, CEO of Hammerson, described the deal as transformational, enhancing future growth and value creation.
- L Catterton’s investment history includes significant holdings in brands like Birkenstock and Golden Goose.
L Catterton, a prominent private equity firm supported by LVMH, has reached a binding agreement to purchase Hammerson’s 42% stake in Value Retail. This transaction, valued at £1.5 billion, marks a significant shift in the ownership of one of the leading designer outlet groups.
Value Retail operates nine luxury and premium fashion outlet centres. These include the famed Bicester Village in Oxfordshire, as well as notable locations near Barcelona, Brussels, Dublin, Frankfurt, Paris, Madrid, Milan, and Munich. The widespread presence of these centres underscores the substantial influence Value Retail holds in the luxury shopping sector.
The acquisition will be executed through Silver Bidco, a newly-formed entity based in Jersey, established specifically by affiliates of L Catterton. As announced by Hammerson, the sale is expected to yield cash proceeds of about £600 million. This significant inflow is part of Hammerson’s strategic move to divest from low-yielding and minority stakes, positioning itself for accelerated future growth.
Rita-Rose Gagné, the CEO of Hammerson, stated, “This is a transformational deal for Hammerson, generating cash proceeds of [circa] £600 million whilst removing an overweight, low yielding and minority stake, and positioning us for accelerated growth and value creation.” Her statement reflects the deal’s importance to Hammerson’s strategic financial plans.
L Catterton is not new to high-profile investments in the fashion industry, with existing stakes in renowned footwear and fashion brands such as Birkenstock and Golden Goose. This acquisition aligns with its strategy to expand its portfolio in the luxury retail space.
The acquisition of Hammerson’s stake in Value Retail by L Catterton signifies a pivotal development in the luxury retail landscape.
