Labelux Buys Jimmy Choo for $812 Million

Upscale British shoemaker and retailer Jimmy Choo was bought by luxury goods group Labelux from TowerBrook Capital Partners LP, the companies said on Sunday.

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The companies did not disclose terms of the deal, but two sources familiar with the deal said it was worth about £500 million ($812 million).

Vienna-based Labelux, whose other investments include shoemaker Bally, said Jimmy Choo's co-founder and Chief Creative Officer Tamara Mellon and Chief Executive Officer Joshua Schulman would stay on in their current jobs. Mellon will take a stake in the subsidiary being created to own Jimmy Choo.

Labelux, founded by Germany's billionaire Reimann family in 2007, was said in media reports to have outbid final-round bidder private equity firm TPG Capital.

TowerBrook Capital Partners, which bought the shoemaker in 2007 for £185 million and has developed the company into a global brand with its stiletto heels worn by the rich and famous, also considered a £650 million Hong Kong listing for Jimmy Choo.

Jimmy Choo was founded in 1996 in London by Mellon, a former Vogue editor, and shoemaker Jimmy Choo, who sold his interest in 2001.

In 2010, Jimmy Choo reported net sales of £150 million. So far this year, sales are rising by a double- digit percentage.

Labelux retained Rothschild as its financial adviser and Hogan Lovells as legal counsel.

TowerBrook hired Goldman Sachs and Morgan Stanley as its advisers and Kirkland & Ellis as legal counsel. The deal is expected to close at the end of June.