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Apax Partners acquires value fashion retailer Takko

23rd December 2010

Funds advised by Apax Partners (Apax) today announced they have entered an agreement to purchase the value clothing retailer Takko Fashion (Takko) from Advent International.

Funds advised by Apax Partners (Apax) today announced they have entered an agreement to purchase the value clothing retailer Takko Fashion (Takko) from Advent International.

Founded in 1982, the Takko group operates approximately 1,500 branches in 15 European countries and employs about 12,500 people. Takko’s clothing is designed mainly by its own designers in Germany and obtained through its own sourcing network. This enables the company to offer its products at particularly competitive prices. This October, Takko registered an EBITDA of €171 million for the last twelve months and a turnover of roughly €1 billion. In the past four years, Takko has opened 500 stores and entered the market in nine new countries – most recently in Italy.

Christian J. Näther, partner at Apax Partners, commented: “Apax’s investment focus is on growth companies. We fully support the successful management team, led by CEO Stephan Swinka, in pursuing its chosen growth course. Takko offers attractive fashion at affordable prices and is exceptionally well positioned to benefit from the above average growth of the value segment of the fashion market. We regard the Takko concept as having enormous potential for expansion, but also further opportunities for sales productivity growth. In addition, the new “1982” brand, which focuses on low cost basics, offers further growth opportunities.”

Stephan Swinka, CEO of Takko Holding GmbH, commented: “Apax is a long-term investor with a long history of successful investments in the fashion sector. We are delighted about the partnership with Apax and the resulting potential for future growth, especially in ecommerce and international expansion.”

The Takko group will continue the planned rollout of its successful store concept in Germany and internationally over the coming years. The extension of the new brand “1982” will expand the growth potential of the group.

Apax Partners has deep retail and consumer expertise and a successful track record of investing in the sector. During their history funds advised by Apax Partners have invested approximately €4.3bn in retail and consumer businesses globally including fashion companies such as Tommy Hilfiger, Phillips-Van Heusen/ Calvin Klein, rue21, inc., New Look, CBR (Street One, Cecil, OneTouch), Tommy Bahama and The Children’s Place, but also other specialty retailers like Somerfield, Sunglass Hut, Plantasien and Nordsee.

In the past 12 months, Apax Funds have invested or committed €2.3 billion in seven new investments across four continents. Over the same period Apax Funds have successfully sold all or part of their stakes in IFCO Systems, Tommy Hilfiger, Bezeq, Promethean World, SMART Technologies, Qualitest, Spectrum Holding Company, rue21 and TDC.

Nomura, Unicredit, Lazard and Ferber&Co. acted as M&A advisor for Apax at the transaction. Bain Consulting, PwC and Linklaters supported Apax regarding the due diligence. The transaction is subject to customary approvals from authorities.