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'Duchess effect' gives French boot firm some private equity welly 'Duchess effect' gives French boot firm some private equity welly
(35 minutes later)
The French Wellington boot-maker Le Chameau, which is a firm favourite of the Duke and Duchess of Cambridge and Prince Harry, is set to be snapped up by private equity firm Marwyn Management Partners for €16.5m (£13.2m). The French wellington boot-maker Le Chameau, which is a firm favourite of the Duke and Duchess of Cambridge, is set to be snapped up by private equity firm Marwyn Management Partners for €16.5m.
The brand, founded in 1927 in Normandy, is about a third the size of its biggest rival, Hunter, but private equity bosses believe it has great expansion potential, especially since its royal fans have been pictured on several occasions sporting the handcrafted boots, which cost up to £550 a pair.The brand, founded in 1927 in Normandy, is about a third the size of its biggest rival, Hunter, but private equity bosses believe it has great expansion potential, especially since its royal fans have been pictured on several occasions sporting the handcrafted boots, which cost up to £550 a pair.
Last year, Le Chameau posted net sales of €24m. By comparison, the British company Hunter had sales of £78m last year. Last year, Le Chameau posted net sales of €24m (£19.2m). By comparison, UK rival Hunter had sales of £78m last year.
Le Chameau's parent company, the skiwear and camping equipment firm Lafuma, wants to offload the business to focus more on its outdoor sports market instead.Le Chameau's parent company, the skiwear and camping equipment firm Lafuma, wants to offload the business to focus more on its outdoor sports market instead.
Mark Watts, executive director of Marwyn, said: "Le Chameau is a brand with an exceptional heritage and product of the very highest quality.Mark Watts, executive director of Marwyn, said: "Le Chameau is a brand with an exceptional heritage and product of the very highest quality.
"We look forward to progressing the transaction to completion in the coming weeks and then helping to grow the business and develop it as a truly international luxury brand.""We look forward to progressing the transaction to completion in the coming weeks and then helping to grow the business and develop it as a truly international luxury brand."
Sales of Le Chameau's £160 Vierzonard boots jumped by a third after the Duchess was pictured wearing a pair at a charity event this summer. Sales of men's boots also increased on the back of the "duchess effect". Sales of Le Chameau's £160 Vierzonard boots jumped by a third after the duchess was pictured wearing a pair at a charity event this summer. Sales of men's boots also increased on the back of the "duchess effect".
The royal connection will no doubt help increase the company's identity, but the biggest profit boosts are expected to come from expanding markets in Asia, where consumers are keen to show off their wealth with high-end goods and clothing.The royal connection will no doubt help increase the company's identity, but the biggest profit boosts are expected to come from expanding markets in Asia, where consumers are keen to show off their wealth with high-end goods and clothing.
Marwyn's investment is the equity firm's first foray into the luxury goods market after focusing on construction groups and then moving into software and media. Marwyn focuses in buying small- and medium-sized firms worth up to £500m. The investment is Marwyn's first foray into the luxury goods market after focusing on construction groups and then moving into software and media. The equity firm focuses in buying small- and medium-sized firms worth up to £500m.
One of its biggest deals was in 2007 when it bought and floated for $200m the film and television distributor Entertainment One, the company behind the releases of the Twilight film franchise and the Peppa Pig TV series. One of its biggest deals was in 2007 when it bought and floated for $200m (£125m) the film and television distributor Entertainment One, the company behind the releases of the Twilight film franchise and the Peppa Pig TV series.
Meanwhile, Hunter has reported a 38% increase in sales in 2011 to £78m, with sales in the UK up 53%, US sales up 11% and international sales elsewhere rising 66%.Meanwhile, Hunter has reported a 38% increase in sales in 2011 to £78m, with sales in the UK up 53%, US sales up 11% and international sales elsewhere rising 66%.
Its Regent, Glitter and Gloss Original boots sold particularly well, according to the company, while its Balmoral leather Hawksworth boot, costing £285, won new footwear product of the year at the shooting industry awards.Its Regent, Glitter and Gloss Original boots sold particularly well, according to the company, while its Balmoral leather Hawksworth boot, costing £285, won new footwear product of the year at the shooting industry awards.
The US private equity firm Searchlight Capital bought a majority stake in the business last December, announcing plans for an international expansion, which appear to be working.The US private equity firm Searchlight Capital bought a majority stake in the business last December, announcing plans for an international expansion, which appear to be working.
Searchlight's chairman, Oliver Haarmann, said: "In 2011, Hunter continued to see success in both fashion and traditional country markets. Europe and the far east drove a favourable international performance whilst product development also contributed to strong sales. Going forward, even with the challenging market conditions, we will continue to invest in the Hunter brand, supporting its development in the digital environment and the expansion of the Hunter business across the globe."Searchlight's chairman, Oliver Haarmann, said: "In 2011, Hunter continued to see success in both fashion and traditional country markets. Europe and the far east drove a favourable international performance whilst product development also contributed to strong sales. Going forward, even with the challenging market conditions, we will continue to invest in the Hunter brand, supporting its development in the digital environment and the expansion of the Hunter business across the globe."