French multinational holding company PPR SA (PPRUF), earlier known as Pinault-Printemps-Redoute, said its subsidiary Redcats agreed Wednesday to sell its U.S.-based OneStopPlus Group to Massachusetts-based private0-equity firms Charlesbank Capital Partners and Webster Capital for $525 million.
The deal, subject to approval by U.S. antitrust regulators, is expected to close during the first quarter of 2013.
OneStopPlus Group is a plus-size business in the U.S. The group consists of OneStopPlus.com, Woman Within, Roaman’s, Jessica London, fullbeauty, KingSize, BrylaneHome and Bargain Catalog Outlet brands.
Redcats is a world leader in the online distribution of fashion, home decoration, as well as sports and leisure goods. Its European and American brands include La Redoute, Daxon, Vertbaudet, Cyrillus, Ellos, Jotex, and Castaluna.
The deal is part of PPR’s strategy to refocus and transform itself into a global leader in apparel and accessories within the Luxury and Sport & Lifestyle sectors.
PPR expects the sale to enable it focus on its more profitable luxury labels such as Gucci and Yves Saint Laurent, as well as lifestyle and sports brand Puma and Volcom.
The deal also completes the sale of the entire Redcats USA business. The company had announced last month the sale of the Sports and Leisure Group to Northern Tool + Equipment.
Meanwhile, PPR also agreed to spinoff Fnac, a retailer in entertainment and home electronics products, on October 10 through the distribution of Fnac shares to shareholders of PPR. The company had disposed Conforama and CFAO earlier.
PPR has long been exploring plans to sell both Fnac and mail-order business Redcats, which includes brands like La Redoute and Golf Warehouse. In 2006, PPR reportedly planned to sell the Fnac investment funds.
PPR, a family-controlled listed company, was founded in 1963 by businessman François Pinault and is now run by his son François-Henri Pinault.
PPR is one of the world’s leading apparel and accessories groups that operates in the two fastest growing market segments: Luxury and Sport & Lifestyle. It has a distribution network in more than 120 companies and has generated revenues of 12.2 billion euros in 2011.
PPR closed Wednesday trading in Paris at 140.60 euros, down 1.80 euros or 1.26% on a volume of 0.23 million shares. Meanwhile, PPRUF closed on the OTC markets at $182.50, up $11.75 or 6.88%.
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by RTT Staff Writer
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