Barclays Private Equity backs £46 million management buy-out of Kurt Geiger

Barclays Private Equity, one of the most prolific mid-market private equity deal makers in Europe, has today completed the management buy-out of luxury shoe retailer Kurt Geiger from the Harrods Group in a £46 million transaction. Barclays Private Equity has taken a 72 per cent stake in the business alongside the management team. This investment further builds Barclays Private Equity’s reputation for buy-outs in the consumer sector.  

Kurt Geiger is internationally recognised as the number one luxury shoe retailer in the UK with the broadest portfolio of men’s and women’s designer brands together with its own brands Kurt Geiger, KG and Carvela. The business operates through an extensive network of over 100 department store concessions including Harrods, Selfridges and House of Fraser as well as stand alone retail outlets. The company’s turnover year ending 29 January 2005 was £104.8m, EBIT £4.8m.  

Nathan Elstub Investment Director of Barclays Private Equity said "Kurt Geiger dominates the high end of shoe retailing in the UK. The business is poised to take its unrivalled experience in this area into new channels in the UK and on the continent. Kurt Geiger has global potential as both a brand owner, and as a category leading retailer."  

Neil Clifford, CEO of Kurt Geiger commented: "Our strategic objective is to be internationally recognised as the most successful luxury shoe retailer. We have the world’s best products within our retail environment and are recognised widely for the amazing service, style and luxury that we offer to customers. Our company has been taking great steps forward and we believe that this partnership with Barclays Private Equity will enable our business to continue its growth as the deal provides us with the perfect platform for future success."  

Steven Silvester, Director of Barclays Private Equity, added: “This deal demonstrates our continued commitment to identifying strong businesses and talented management within the consumer sector. It also shows that, for the right deal, Barclays Private Equity is prepared to look through the current difficult retail environment and back ambition where it is allied to ability.”  

Barclays Private Equity backed the existing management team, led by Chief Executive Officer Neil Clifford, to buy the business and to support the team's plans to continue to grow the unique product proposition, store distribution and brand awareness. Other members of the management team include Dale Christilaw, Rebecca Farrar-Hockley, Bianca Foley, David Wilkinson and Jenny Smallman.  

Nathan Elstub, Steven Silvester and Nick Fegan, led the investment for Barclays Private Equity. Debt funding was provided by Lloyds TSB - led by Peter Bate, Neil Price, Dave Bulley, Simon Barnes and Ian Sale.