Dec. 6 (Bloomberg) -- PPR SA agreed to sell its U.S.-based OneStopPlus large-size clothing business as the owner of Gucci disposes of retail assets to focus on luxury and sports brands.
OneStopPlus, part of PPR’s Redcats retail division, will be sold to private-equity firms Charlesbank Capital Partners and Webster Capital for an enterprise value of $525 million, Paris-based PPR said yesterday in a statement. The sale is expected to be completed in the first quarter of next year.
“This announcement is small positive news, reflecting the final stage of PPR’s transformation and refocus on luxury and lifestyle activities,” Thomas Chauvet, an analyst at Citigroup Inc. in London, wrote today. PPR’s management will “continue to focus its efforts on selling the remaining assets of Redcats in coming months or early next year,” he said, including the “more challenged” La Redoute catalog.
PPR’s shares rose as much as 1.3 percent, and traded up 1.1 percent at 142.2 euros ($186) at 9:11 a.m. in Paris. Its shares have increased 28 percent this year.
PPR said in 2010 that it would divest Redcats alongside other retail assets in order to focus on its luxury, lifestyle and sports brands. A challenging debt market had made Redcats too expensive to sell in one piece, according to two people familiar with the matter. Redcats sold its Avenue stores, another U.S. large-size business, to an affiliate of Versa Capital Management LLC earlier this year.
Peter J. Solomon Co. acted as financial adviser on the deal, while Wachtell, Lipton, Rosen & Katz provided legal advice, according to the statement.
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