L Catterton, supported by LVMH, has acquired a significant stake from Hammerson.
- Hammerson agreed to sell its 42% share in Value Retail, a designer outlet operator.
- The transaction is valued at £1.5 billion, with cash proceeds of approximately £600 million for Hammerson.
- Value Retail operates nine luxury outlet centres across major European cities.
- This strategic move aids Hammerson in focusing on growth and value creation.
L Catterton, a private equity firm supported by LVMH, has successfully acquired a 42% stake in Value Retail previously held by Hammerson. This strategic sale agreement, concluded at an enterprise value of £1.5 billion, signifies a major move in the retail investment landscape. Hammerson will receive cash proceeds amounting to approximately £600 million from the transaction, which was publicly announced on the morning of July 22, 2024.
Value Retail is renowned for its operation of nine luxury and premium outlet centres, including the famed Bicester Village in Oxfordshire. Other locations include centres near major cities such as Barcelona, Brussels, Dublin, Frankfurt, Paris, Madrid, Milan, and Munich. This vast network of destination retail sites highlights Value Retail’s prominent position in the European outlet sector.
The acquiring entity, Silver Bidco, is a newly formed company incorporated in Jersey by affiliates of L Catterton. This acquisition adds to L Catterton’s extensive portfolio, which already includes notable brands such as Birkenstock and Golden Goose. The transaction aligns with L Catterton’s strategy of investing in high-growth potential retail and lifestyle brands.
Rita-Rose Gagné, CEO of Hammerson, expressed her enthusiasm for the deal, describing it as “a transformational deal for Hammerson, generating cash proceeds of [circa] £600m whilst removing an overweight, low yielding and minority stake, and positioning us for accelerated growth and value creation.” This reflects Hammerson’s focus on streamlining its investment portfolio and concentrating resources on more lucrative ventures.
This acquisition marks a significant reshaping of stakeholder interests within the luxury retail outlet industry.
