Jimmy Choo and Bally Are Up For Sale

Luxury shoe brands Jimmy Choo and Bally are up for sale, as JAB shifts more focus to its food and beverage companies.

JAB Luxury, currently owning 67.7 per cent of Jimmy Choo, said it would not comment “until a decision on possible strategic options has been made.”

Jimmy Choo’s revenue climbed by 15 per cent to £364 million last year. After the sale plan was announced, the company’s shares rose by 11.3 per cent.

The shoe brand said no offer had been made prior to the announcement, and that “there can be no certainty that an offer will be made, nor as to the terms on which any offer will be made.”

Observers believe that Jimmy Choo could attract buyers from companies such as Michael Kors Holdings Ltd., LVMH, Kering and Coach Inc, and Mayhoola. “What remains to be seen is whether growing interest from Asia and the Middle East for luxury U.K. brands will see Jimmy Choo receiving offers from foreign buyers searching for well-known British brands,” said Jonathan Buxton, partner and head of consumer at Cavendish Corporate Finance.

JAB Holding Company, owned by Germany’s Reimann family, has been building its food and beverage chain portfolio, with the acquisition of bakery group Panera Bread for US$7.2 billion this month and of Krispy Kreme for US$1.35 billion last July.

“We consider disposals of JAB’s luxury business make sense as they do not offer the same cost synergy advantages as the company’s other businesses in the fast-moving consumer goods sector,” said Moody’s senior analyst Jeanine Arnold.