Schustermann & Borenstein Said to Start 700 Million Euro Sale

  • Private equity owner Ardian wants first-round bids this month
  • Retailer said to expect 2016 Ebitda of 60 million euros

Ardian SAS, the French buyout firm, kicked off a sale of designer fashion retailer Schustermann & Borenstein GmbH, which could fetch about 700 million euros ($780 million), people familiar with the matter said.

The company has distributed information to potential bidders and first-round offers are due mid September, the people said, asking not to be named because the talks are private. The business, which Ardian acquired in 2012, is attracting private equity firms and companies in the industry, they said.

Schustermann & Borenstein, which sells designer clothes to members through a website and two shops in Munich and Vienna, is expecting earnings before interest, taxes, depreciation and amortization of 60 million euros on 370 million euros of sales this year, the people said. JPMorgan Chase & Co. is advising Ardian on the sale, one of the people said.

The median price for apparel companies and clothing retailers sold in the last 12 months is about 9.8 times Ebitda, according to data compiled by Bloomberg. Money spent on deals in the industry during that time has fallen 23 percent to $10.4 billion.

Representatives for Ardian and JPMorgan declined to comment.