LVMH’s subsidiary, L Catterton, is set to acquire a substantial stake in Value Retail from Hammerson, marking a significant transaction in the retail sector.
- Hammerson has finalized a binding agreement to sell its 42% stake in Value Retail, a leading designer outlet group, to L Catterton.
- The deal, valued at £1.5 billion, involves the transfer to Silver Bidco, a Jersey-incorporated company associated with L Catterton.
- This acquisition includes Value Retail’s nine luxury and premium outlet centers located across Europe, enhancing L Catterton’s portfolio.
- Hammerson CEO notes that this deal is transformative, offering financial gains and strategic positioning benefits for the company.
In a notable transaction, Hammerson, owner of numerous shopping centers, has reached a binding agreement to sell its 42% stake in Value Retail. This designer outlet group is known for its luxurious retail centers, such as Oxfordshire’s renowned Bicester Village. The agreement involves a transfer of ownership to a subsidiary backed by LVMH’s private equity arm, L Catterton.
The transaction is valued at £1.5 billion and involves the newly established company, Silver Bidco, based in Jersey and affiliated with L Catterton. Hammerson projects that it will generate cash proceeds of approximately £600 million from this sale. This cash inflow is viewed as strategically beneficial for Hammerson, enabling it to streamline its portfolio and focus on more lucrative investments.
Value Retail operates nine premium outlet centers across key European cities, including locations near Barcelona, Brussels, Dublin, Frankfurt, Paris, Madrid, Milan, and Munich. The acquisition is anticipated to enhance L Catterton’s already robust portfolio, which includes holdings in fashion and footwear brands such as Birkenstock and Golden Goose.
Hammerson’s CEO, Rita-Rose Gagné, emphasized the transformative nature of the deal, stating that the transaction not only provides significant financial returns but also refines the company’s asset portfolio by divesting a minority stake that offered low yield returns. Gagné noted that this strategic move positions Hammerson for accelerated growth and increased value creation in the future.
The transaction marks a strategic realignment for Hammerson while expanding L Catterton’s luxury retail position in Europe.
