Hotline: 1800 102 2007
X
Search Business Opportunities
Mar, 23 2018

Global Funds Eyeing Controlling Stake In Pepe Jeans India

Pepe operates more than 200 branded outlets in India most of them franchisee run and its products are also sold through more than 1,500 multibrand outlets.

Private equity and sovereign funds are vying to buy a controlling stake in the Indian arm of Pepe Jeans, people aware of the matter said

Five global funds including KKR, Carlyle, General Atlantic and Malaysia’s sovereign fund Khazanah have submitted non-binding offers for the company and are conducting due diligence. The parent company of Pepe Jeans India is seeking a valuation of Rs 2,000 crore for the Indian business.

There is no certainty that the funds will make a final offer for the company, though people said they found the business attractive. Kavindra Mishra, MD of Pepe India, declined to comment, saying the company does not respond to market speculation. KKR, Carlyle and General Atlantic declined to comment. Khazanah didn’t respond until press time.

Pepe Jeans India is a fully owned subsidiary of Barcelona-based Pepe Jeans Group. In 2015, LVMH-owned L Catterton (formerly L Capital Asia) and Lebanese investment firm M1Group acquired a majority stake in Pepe Jeans Group from Torreal, Artá Capital and L Capital Europe. KKR was said to be among the contenders for a stake in the global arm at the time. Kotak Group’s investment banking arm is advising the global parent on the divestment of the Indian unit.

The head of a global fashion brand said that it could be a good time for L Catterton and M1 to sell the brand in India. “They have reached hundreds of stores and got good profits and they know there is going to be pressure from new entrants and existing one. Currently they are at their peak, both in terms of revenue and valuation, so I think this is the best time to exit. It is always better for PEs to exit when you are at your peak,” the person said.

Pepe operates more than 200 branded outlets in India most of them franchisee run and its products are also sold through more than 1,500 multibrand outlets.

Comment
Related opportunities
  • Want to have your own business that is spread globally..
    Locations looking for expansion Maharashtra
    Establishment year 2009
    Franchising Launch Date 2010
    Investment size Rs. 5lac - 10lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Nagpur Maharashtra
  • Transportation
    InXpress has its origins in the world's largest business management..
    Locations looking for expansion Maharashtra
    Establishment year 2011
    Franchising Launch Date 2013
    Investment size Rs. 5lac - 10lac
    Space required 00
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Others Travel
    About Us: eBike is one of it's kind Revolutionary startup aiming..
    Locations looking for expansion Punjab
    Establishment year 2018
    Franchising Launch Date 2018
    Investment size Rs. 30lac - 50lac
    Space required 1100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Amritsar Punjab
  • Others Food Service
    In 2007 Xotik Frujus Pvt. Ltd., was incorporated and has ever since..
    Locations looking for expansion Maharashtra
    Establishment year 2007
    Franchising Launch Date 2008
    Investment size Rs. 10lac - 20lac
    Space required 600
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Kandivali east Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities