Baring Asia buys stake in TA-owned Cath Kidston

The partnership will see Baring Asia and TA to support Cath Kidston's expansion into Asia.

Financial details of the deal were not disclosed. Baring Asia and TA will each own an equal stake in the company following the transaction which is thought to value the business at around GBP250 million ($426 million). 

According to AVCJ's Europe-focused sister publication unquote", TA Associates acquired a majority stake in Cath Kidston in April 2010 in a deal that valued the company at about GBP100 million.

Starting out as a single shop in London's Holland Park in 1993, Cath Kidston has  grown into a global lifestyle brand with 166 outlets across the UK, France, China and 10 other Asian territories. The brand offers products ranging from accessories and womenswear to childrenswear and home furnishings.

In the year ended March 2014, sales increased 10% to GBP116 million with EBITDA rising 19% to GBP25 million. International retail sales increased 37% to GBP46 million. 

"Cath Kidston is an established and profitable brand and, with strong underlying trends in consumer demand across Asia, we look forward to further developing the brand across the region," said Dar Chen, a managing director at Baring Asia, in a statment.

"We believe that cross-border transactions of this nature will increasingly enable Baring Asia to demonstrate the value that our pan-Asia network and hands-on operational experience can bring to Western corporations looking to develop their business in the region."

Baring Asia is not the only Asian GP to partner up with a European brand looking to tap Asia's fast-growing consumer classes. Earlier this month Hony Capital agreed to buy restaurant chain Pizza Express from UK-based private equity firm Cinven Partners for GBP900 million.

Baring has been active in Asia since 1997, specializing in mid-cap buyout and growth capital, and currently manages around $5 billion in committed capital. According to AVCJ Research data, the firm's last foray into Europe was the acquisition of UK-listed education provider Nord Anglia through a $379 million take-private transaction in 2008. Baring Asia took Nord Anglia public once again earlier this year, raising $304 million in the US.

UBS acted as exclusive financial advisor to TA Associates and Cath Kidston on this latest transaction.

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• Topics
• Consumer
• Europe
• Buyouts
• Exits
• Baring Private Equity Asia
• Consumer
• Exit
• buyout
• TA Associates