In a significant change of ownership, private equity firm Cinven is set to sell the British footwear and accessories brand, Kurt Geiger, to American shoe brand Steve Madden, in a deal worth £289m.
Acquiring Kurt Geiger for £245m in 2015, Cinven has overseen remarkable growth in the US market, particularly in the last year, with sales soaring by 58.7% to over £110m between February and September, as reported by .
The brand's e-commerce and wholesale divisions witnessed an impressive surge, growing by 94.4% and 50.9%, respectively. Since 2018, annual US sales have catapulted from a modest £2.5m to an astonishing £250m.
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Under Cinven's stewardship, Kurt Geiger has expanded its physical presence in America, boasting four brick-and-mortar stores, with ambitions to reach 50 locations across the nation. In total, the brand now operates over 70 stores globally.
Kurt Geiger's chief executive, Neil Clifford, reflected on Cinven's pivotal role in shaping the company's trajectory: "[Cinven] have been instrumental in creating value for Kurt Geiger, helping us to transform and strengthen the business."
Clifford continued, "We have successfully implemented new strategies and broadened our product offering, all whilst staying true to our brand identity. As we step into this next exciting phase, we do so with a strong foundation."
Riding a wave of success, Kurt Geiger recently announced record growth of 17% in December, propelled by a 54% increase in handbag sales and its successful foray into the US market.
The brand will be bought by Steve Madden, which also owns the Dolce Vita, Betsey Johnson, Blondo and Greats fashion brands.
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Senior principal Olivier Cassat said: We believe the new owners bring complementary expertise and industry understanding to further accelerate its success. We look forward to seeing Kurt Geiger flourish in the years ahead."
It should be noted that the transaction is still subject to regulatory approvals and other closing conditions.