PPR in Talks to Sell Redcats Unit to Alpha Fund for $156 Million
PPR SA, (PP) owner of the Gucci brand, said it’s in talks to sell the children’s and family division of its Redcats unit in a deal valued at 119 million euros ($156 million) as it disposes of retail assets to focus on luxury and sports brands.
Exclusive negotiations are being held with buyout firm Alpha Private Equity Fund 6, the Paris-based company said today in a statement. The deal amount refers to the enterprise value of the business, or the sum of its equity and debt minus cash.
PPR is selling Redcats in pieces, having sought a buyer for the unit since 2010. The company last month agreed to sell its U.S.-based OneStopPlus large-size clothing business to two private-equity firms for an enterprise value of $525 million.
Redcats’ children’s and family division comprises the Cyrillus and Vertbaudet brands. The transaction will be completed in “the coming months,” subject to consultation with employee representative bodies and to approval of the competition authorities, PPR said in today’s statement.
PPR shares rose 1.6 percent to 145 euros in Paris trading. The sale was announced after markets closed.
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