SMCP for sale?Tuesday, 02 October 2012
The SMCP Group, the company behind the brands Sandro, Maje and Claudie Pierlot, is reportedly
for sale. According to the French weekly 'Le Journal du Dimanche', which bases its assertion on anonymous sources, investment banks J.P.Morgan and Edmond de Rothschild have been appointed leads in the sale. SMCP was not available for comment.
Two years ago, investment firms L Capital (LVMH and the Groupe Arnault) and Florac took a majority stake of 51 percent in the fashion group. Founding sisters Evelyne Chétrite (Sandro) and Judith Milgron (Maje), and managers Frédéric Biousse and Elie Kouby, remained owners of the remaining 49 percent.
During the past two years, the SMCP Group has enjoyed explosive growth. In 2011, sales jumped 40 percent to 303 million euros, with a net profit of 50 million euros. The firm expects to generate sales of 500 million euros in 2014. The sales price is estimated at twelve times the company earnings (EBITDA).
Sandro is the group's biggest cash cow. The brand was established in 1989. In 2004, founder Evelyne Chétrite drastically put a stop to its wholesale business and turned the company into a retail brand. According to Chétrite, this was a necessary step to be able to compete with foreign chains like H&M and Zara. It turned out to be a brilliant move. Sandro opened directly owned stores in quick succession and opened in the UK in 2008. Sales soared from 15 million euros in 2007 to 110 million euros in 2010 and 200 million euros in 2011.
Maje was founded in 1998 by Chétrite's younger sister. Together, Sandro and Maje currently operate about five hundred points of sale worldwide. The SMCP Group was established in 2009. Claude Pierlot - the 'CP' in the name - was the company the sisters acquired upon the death of its eponymous founder that same year.