Saturday, November 27, 2010

UPDATE 1-Buyout firms plan bids for Takko - sources - Fashion

* Apax, Bain, EQT, TPG eyeing fashion chain Takko-sources
* Takko owner Advent still considering IPO - source
* Business seen valued at about 1.25 bln eur
(Adds background, adds Bain)
LONDON/FRANKFURT, Nov 17 (Reuters) - At least four private
equity firms were expected to place first round offers this week
for leading German budget fashion retailer Takko, people
familiar with the matter said.
Apax Partners, Bain Capital, EQT and TPG [TPG.UL] are
preparing bids for the business, owned by rival buyout firm
Advent International, two of the people said. An initial public
offering is also under consideration, a third source said.
Bankers said discount retailers were typically valued at 10
times earnings before interest, tax, depreciation and
amortisation (EBITDA), valuing Takko at about 1.25 billion euros
($1.75 billion).
A growing number of price-conscious Germans have been
turning to discount clothing stores, helping to boost sales at
Takko, one of the country's largest and fastest-growing clothing
chains, to 900 million euros in the year to end-April.
An estimated 25 percent of German adults have purchased its
products in the last year, according to Advent's website.
Takko is the latest in a series of European companies owned
by private equity firms that are close to changing hands in a
so-called secondary buyout, or a return to the public market, as
owners look to cash out of their best performing investments.
Advent, which bought the business in 2007 from Permira
[PERM.UL] for 770 million euros, plans to sell or spin off the
business by early next year, a source said in August.

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