Private Equity Firm Exits Liberty London After Revenue Growth and Brand Expansion
- Bluegem sells 40% stake in Liberty London
- Deal worth £300m initiated by Glendower Capital
- Liberty’s fabrics business grew at a CAGR of 11% since 2010
- Launched Liberty London brand for accessories, small leather goods, and sleepwear
- CEO Adil Khan joined earlier this year
- Bluegem generated 12 times initial investment returns
- Marco Capello remains chairman of Liberty going forward
Private equity firm Bluegem has sold a 40% stake in the iconic British department store, Liberty London, to Glendower Capital for £300m. The deal comes after a secondary recapitalisation led by Glendower Capital, a global secondary private equity manager. Bluegem acquired Liberty in 2010 when it recorded sales of £63m and EBITDA close to zero, managing the store until 2018 when revenues reached £166m and EBITDA hit £25m. The fabrics business, which has been the brand’s hallmark for over a century, grew at a compound annual growth rate (CAGR) of 11% from £22m to £53m during Bluegem’s tenure. They also launched their own eponymous brand, Liberty London, focusing on accessories, small leather goods, and sleepwear, which now generates £8m in sales. This year, Adil Khan, former CEO of Luxottica and Wella, joined as CEO while Marco Capello stepped down from the executive chairman position but remains non-executive chairman. Bluegem’s Emilio Di Spiezio Sardo and Marco Anatriello said the firm generated 12 times the initial investment across their funds, Bluegem I and II. The secondary recapitalisation achieved two goals: providing liquidity for Bluegem II and its co-investing LPs within the expected timeframe and offering Liberty a new shareholders’ base to support future growth. Capello will continue as Liberty’s chairman, ensuring Bluegem stays attuned to emerging trends and brands that define the store’s history.
Factuality Level: 10
Factuality Justification: The article provides accurate information about the sale of Liberty London’s stake by private equity firm Bluegem, details about the company’s performance under Bluegem’s ownership, and quotes from key individuals involved in the transaction. It also includes relevant financial data and future plans for the brand.
Noise Level: 3
Noise Justification: The article provides relevant information about the sale of Liberty London’s stake by private equity firm Bluegem and highlights the growth achieved during their ownership. It also mentions the new CEO and the plans for future growth. However, it lacks in-depth analysis or exploration of long-term trends or consequences of decisions.
Financial Relevance: Yes
Financial Markets Impacted: Private equity firms, department store industry
Financial Rating Justification: The article discusses the sale of a stake in Liberty London by private equity firm Bluegem and its impact on the company’s financial performance and management structure.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:
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