Luxury goods group Labelux GmbH has today announced the acquisition of designer shoe label Jimmy Choo for an estimated £500 million.
A firm favourite of celebrities and socialites, Jimmy Choo was founded by British entrepreneur Tamara Mellon OBE in 1996, who is to remain the firm’s Chief Creative Officer following the deal.
Labelux, which also owns international luxury brands Bally, Derek Lam, Sloange Azagury-Partridge and Zagliani, is also going to retain company CEO Joshua Schulman in his current position.
“We are delighted to announce this acquisition. Jimmy Choo is an outstanding brand with enormous growth potential and the ability to deliver material growth synergies across our group.
“Tamara, Josh and the team have created a world-class, customer-oriented business. We welcome them to the Labelux stable and look forward to working with them to ensure Jimmy Choo’s continuing success.”
Jimmy Choo was acquired in 2007 by private equity firm TowerBrook Capital Partners for £185 million and helped double the brand’s store portfolio from 60 to 120 global properties during that time.
Only established in 2007, Labelux has quickly taken control of several international luxury brands, including 150-year-old Swiss brand Bally Shoe.
The women’s shoes and leather goods market, of which Jimmy Choo is part, is expected to be the fastest growing section of a fast expanding luxury goods market in the next couple of years, and Labelux hopes the company can further improve on the £150 million net sales it achieved in 2010.
Mellon commented: “My ambition for Jimmy Choo to inspire women around the world has never had any limits.
“I am immensely proud of all we have achieved over the last 15 years and delighted we are to be part of Labelux, a partner who I know shares our values and passion and who seeks ambitious growth in the luxury market.
“This is wonderful news for the women who are, or aspire to become, part of the Jimmy Choo lifestyle.”