GIC bags minority stake in Jimmy Choo at IPO

It is the latest in a string of direct investments outside of Asia that have seen GIC gain exposure to education services in Brazil, e-payment and logistics in North America, and roadside recovery in the UK.

In a difficult London market that has seen several IPOs abandoned, existing backers of Jimmy Choo sold 100.9 million shares at GBP1.40 apiece - the bottom end of the indicative range - to total proceeds of GBP141.3 million. This generated net proceeds of GBP136 million for the principal seller, a vehicle controlled by Germany's Reimann family, which also owns the Bally, Belstaff, and Zagliani brands.

The Reimann family still owns 70.1% of the company. With 18 million shares, GIC is now the second-largest shareholder.

Founded in 1996, Jimmy Choo has expanded its product range from footwear to include handbags, small leather goods and various accessories. It has a network of 120 directly-operated stores. Its retail presence in 35 countries is supplemented through wholesalers, franchises and e-commerce. To drive expansion across Asia - and to maintain quality and brand control over wholesalers and franchisees - the company has opened offices in Hong Kong, Shanghai and Tokyo.

Jimmy Choo posted a net loss GBP17.7 million in 2013, up from GBP2.7 million the previous year. Revenues increased from GBP243 million to GBP281.5 million over the same period. Debts tied to the Reimann family's acquisition of the business in 2011 were primarily responsible for the losses. EBITDA increased marginally in 2013 over 2012, reaching GBP46.9 million.

Earlier this year, GIC acquired an 18.5% stake in Brazil's Abril Educação for an estimated $265 million and became a co-investor in RAC alongside The Carlyle Group. It also teamed up with Ontario Teachers' Pension Plan and PSP Investments to back North American freight brokerage firm XPO Logistics, and led a Series E found of funding worth a reported $150 million in Square, a US-based provider of mobile credit card payment solutions to small and medium-sized enterprises.

AVCJ Research's records of direct investments by GIC stretch back to mid-1990s. However, in addition to backing private equity funds, the group appears to have become more active in the space, increasingly looking beyond Asia. GIC is already an established global player in real estate and infrastructure.

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• Topics
• Consumer
• Europe
• Southeast Asia
• Expansion
• GIC Private
• Singapore
• Europe
• Consumer
• IPO
• Growth capital