LVMH’s PE arm acquires 8% stake in Fabindia

Tuesday, 21 February 2012

As signalled at earlier, L Capital, the private equity arm of LVMH, the world’s biggest luxury goods group is said to have acquired 8 per cent stake held by Wolfensohn Capital Partners in well-known Indian ethnic wear chain Fabindia. The deal valuation is estimated to be about Rs 1,400 crores. Fabindia, one of India’s most profitable retail companies, was looking to raise Rs 200 crores to fuel its expansion plans and existing operations through a round of fresh equity investments and by selling the eight per cent stake held by the existing investor, Wolfensohn Capital Partners, which is keen on making an exit.

In 2007, the fund held by former World Bank president James Wolfensohn, acquired about eight per cent stake in Fabindia for Rs 50 crores and today the company is estimated to be valued between Rs 1,000 to Rs 1,200 crores. The promoters, led by William Bissell and his family, own 50 per cent stake in Fabindia.

The 50-year-old Fabindia has 140 stores across the country that mainly sells textile-based products. L Capital Asia, backed by $31 billion LVMH group, has already made its India debut by picking up 25.5 per cent stake in Sanjay Kapoor-promoted Genesis Luxury Fashion last year. Genesis Luxury franchises leading Italian and British luxury labels such as Canali, Paul Smith, Bottega Veneta, Jimmy Choo, Etro, and the international brand Tumi. Its parent company Genesis Colors owns luxury fashion labels like Satya Paul and Bwitch!

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