Carlyle revives $1.2bn sale of lingerie firm Hunkemoller

Sep 10, 2021 | ITPEC, News

U.S. private equity firm Carlyle is reviving plans to sell Netherlands-based lingerie chain Hunkemoller that were delayed by the pandemic, two people close to the matter told Reuters, in a deal that could top $1.2bn. 

Hunkemoller, which runs 850 stores around Europe, reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of $40.6m in the year ended Jan. 31, compared with €75.5m a year earlier, before the pandemic struck. Sales fell 14% to €459m.

Sales and EBITDA are expected to rebound strongly this financial year, a person familiar with the matter said, as the chain has increasingly moved to a hybrid model, with online sales now making up more than a quarter of the total.

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The brand, showcased by models Duckie Thot and Rebecca Mir, is also growing its wholesaling channels via Zalando, Nordstrom, Amazon and others.

The company is targeting EBITDA of €85-90m this fiscal year and more than €100m in 2022-2023.

JPMorgan has been picked to lead the sales process. At a valuation of 11-13 times EBITDA, the company’s value is estimated around 1 billion euros.

The range was derived by comparisons to recent sales of two smaller chains – Honey Birdette of Australia to Playboy owner PLBY Group Inc. in June for $333m, and Britain’s Sweaty Betty to Wolverine World Wide Inc. in August for $410m.

Carlyle purchased Hunkemoller for around €440m in early 2016, Reuters reported at the time.

JPMorgan is expected to launch the sales process this month, month, with non-binding bids due in October, the people said.

Source: Reuters

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