Baring Private Equity Asia has acquired a substantial stake in UK-based lifestyle brand company, Cath Kidston, from its existing majority shareholder TA Associates and members of the company’s management team. Baring Asia will have equal ownership with TA, and will partner with TA and the current management team to expand the brand and further develop its network in Asia. TA Associates first invested in Cath Kidston in 2010.
Cath Kidston is a lifestyle brand offering a range of products from accessories and womenswear to childrenswear and home furnishings. The company has stores in China, France, Hong Kong, Indonesia, Japan, Korea, Malaysia, Singapore, Spain, Taiwan, Thailand and the UK. In July 2014, Cath Kidston opened its 100th overseas store in Seoul, South Korea, bringing the total number of stores to 166. For the year ended March 30, 2014 the company’s sales increased 10% to £116 million with EBITDA rising 19% to £25 million. International retail sales increased 37% to £46 million. Cath Kidston was founded in 1993 and is headquartered in London (www.cathkidston.co.uk).
“Cath Kidston is an established and profitable brand and, with strong underlying trends in consumer demand across Asia, we look forward to further developing the brand across the region,” said Dar Chen, a Managing Director at Baring Asia. “We believe that cross border transactions of this nature will increasingly enable Baring Asia to demonstrate the value that our pan-Asia network and hands-on operational experience can bring to Western corporations looking to develop their business in the region.”
“We have enjoyed partnering with Cath Kidston over the past four years and assisting with their international growth. We welcome Baring Asia as a new investor and look forward to working closely with them and management as Cath Kidston continues its international expansion,” said Christopher Parkin, a Managing Director at TA Associates.
TA Associates makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. Since founding in 1968, TA has invested in over 431 companies globally and has raised more than $18 billion in capital. The firm has offices in Boston, Menlo Park, London, Mumbai and Hong Kong (www.ta.com).
Baring Private Equity Asia advises funds that manage more than $5 billion in committed capital. The firm runs a pan-Asian investment program, specializing in mid-cap buyouts and providing growth capital to companies for expansion or acquisitions. Baring Asia currently has over 30 portfolio companies across Asia with 95,000 employees and revenues of over $25 billion. The firm has been investing in Asia since its formation in 1997 and has approximately 100 employees located in Hong Kong, Shanghai, Beijing, Mumbai, Singapore, Jakarta and Tokyo (www.bpeasia.com).
“Finding the right partner to help us manage the development of the Cath Kidston brand in Asia was a key consideration for us and I am delighted that Baring Asia has invested in the future of our business,” said Kenny Wilson, CEO at Cath Kidston. “Their support and operational experience will be invaluable as we expand further in the region. And with the continued backing from TA Associates we now have an even greater opportunity to build on the enormous appeal of the Cath Kidston brand internationally.”
UBS acted as exclusive financial advisor to TA Associates and Cath Kidston on this transaction.
2014 PEPD • Private Equity’s Leading News Magazine • 7-23-14
