KKR to Partner with Management to Acquire SMCP Group

  KKR to Partner with Management to Acquire SMCP Group

KKR is investing in SMCP Group to drive further growth under strong leadership
of current management team and to create a global leader in affordable luxury

Business Wire

PARIS & LONDON -- April 18, 2013

Kohlberg Kravis Roberts & Co. LP (together with its affiliates, “KKR”) and
SMCP Group (Sandro, Maje and Claudie Pierlot) (“SMCP” or “the Company”), a
leading ready-to-wear affordable luxury apparel retailer, today announced that
KKR signed a definitive agreement with SMCP’s current shareholders to acquire
a majority stake in the Company alongside its management team. KKR will own
approximately 65% of the Company’s share capital with management retaining
approximately 35%. The agreement remains subject to regulatory approvals and
customary closing conditions.

“I have created this beautiful family history with my sister, Judith Milgrom,
and I am pleased to embark on a new phase of our lives with KKR. Alongside
Elie Kouby and Frédéric Biousse, Judith and I are reaffirming our full
commitment to the business and have great ambitions for the group: building a
global leader in the affordable luxury segment”, said Evelyne Chétrite,
President of SMCP Group.

“We are excited to partner with KKR”, added Frédéric Biousse, the CEO of SMCP
Group. “We are proud of the Company’s strong development over the recent years
and would like to thank our shareholders L Capital and Florac for their
support. We look forward to working with KKR as we accelerate the
international expansion of our brands, particularly in the United States and
Asia. KKR’s global presence and extensive experience and track-record in the
international retail sector will be important assets in helping us continue
our growth trajectory”.

Jacques Garaïalde, Partner and Managing Director in charge of KKR’s French
operations, added, “SMCP is a remarkable business with an outstanding
management team. The Company has developed strong French brands with
international appeal, and high quality products at affordable prices that meet
the needs of consumers around the world. We are pleased to support the team in
their growth strategy”.

Over the past five years, the Company has experienced significant growth
driven by a combination of like-for-like growth and new store openings across
its four brands: Sandro, Sandro Men, Maje and Claudie Pierlot. Today, the
Company has established a leading position in the French affordable luxury
segment and a fast-growing international business with strong positions in
Europe and a growing presence in the USA and more recently Asia. SMCP operates
more than 570 points of sale, and generated a turnover of 350 million euros in
2012. Approximately 150 new store openings are planned for 2013, mainly
outside France.

“We are delighted to have accompanied SMCP Group during the last couple of
years of rapid development and we wish the managers, founders and KKR much
success”, added Daniel Piette and Eduardo Velasco from L Capital and Léopold
Meyer from Florac.

KKR was advised by Rothschild & Cie and SMCP Group was advised by J.P. Morgan
and Leonardo & Co.

About SMCP Group

SMCP Group is a leading apparel retailing group, operating in the attractive
affordable luxury apparel segment across four brands: Sandro, Sandro Men, Maje
and Claudie Pierlot. Sandro and Maje were founded by Evelyne and Didier
Chétrite and Judith Milgrom and Alain Moyal in the late 1980s and 1990s,
respectively. In 2007, Evelyne and Judith were joined by Frédéric Biousse and
Elie Kouby to accelerate the development of their brands. Claudie Pierlot was
acquired in early 2009 and SMCP Group was subsequently created in 2010 upon an
investment made by L Capital and Florac. SMCP Group developed a unique and
effective business model: combining luxury codes (marketing & communication,
shopping experience) with creative design content and high-quality fabrics
while leveraging best practices from the fast fashion industry (short
collection cycles and reactivity to market trends supported by an efficient
supply chain). Having already opened 69 retail outlets in North America over
the last 18 months, Sandro, Maje, and Claudie Pierlot also have five stores in
Hong Kong and will open their two first stores in Shanghai in July, followed
by four additional stores by the end of the year.

About KKR

Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading
global investment firm with $75.5 billion in assets under management as of
December 31st, 2012. With offices around the world, KKR manages assets through
a variety of investment funds and accounts covering multiple asset classes.
KKR seeks to create value by bringing operational expertise to its portfolio
companies and through active oversight and monitoring of its investments. KKR
& Co. L.P. is publicly traded on the New York Stock Exchange (NYSE: KKR), and
"KKR," as used in this release, includes its subsidiaries, their managed
investment funds and accounts, and/or their affiliated investment vehicles, as


L Capital: Eduardo Velasco, Philippe Franchet and Manal Saleh

Florac: Léopold Meyer, Olivier Golder and Gautier Preney


Buyers: Rothschild & Cie (Laurent Baril), Bredin Prat (Sébastien Prat),
Simpson Thacher & Bartlett, Landwell, McKinsey, Roland Berger, Anne Beall,

Sellers: JP Morgan (Séverin Brizay), Leonardo & Co (Laurance Danon), The
Financial Company of Edmond de Rothschild, SJ Berwin (Jérôme Jouhanneaud), DLA
Piper (Michel Frieh), Shearman & Sterling (Guillaume Isaultier), KPMG (Axel
Rebaudières and Vincent Delmas), Taj (Sophie Blegent-Delaphille), Oloyrn
(Frédéric Jannin and Eric Lesieur).


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Estelle Guillot-Tantay
+ 33 1 53 70 74 93
RLM Finsbury
Michael Turner / Nina Suter
+44 207 251 3801
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