Lion Capital LLP

Lion Capital
Company typePrivate
IndustryPrivate equity
PredecessorHicks Muse Tate & Furst Europe (1999-2004)
Founded2004; 20 years ago (2004)
HeadquartersLondon, SW1
United Kingdom
ProductsLeveraged buyouts, Growth capital
Total assets€4.8 billion
Number of employees
65[1]
Websitelioncapital.com

Lion Capital LLP is a British private equity firm specialising in investments in the consumer sector. Previous and current consumer brands owned by Lion have included Weetabix, Jimmy Choo, Wagamama, Kettle Foods and AllSaints.

The firm is headquartered in London, England, and employs 30 investment executives across its London and Los Angeles offices.[2]

The firm’s principals have invested approximately €6 billion in more than 30 businesses and more than 100 consumer brands.[1]

History

The firm’s predecessor was launched in 1998 as the European affiliate of American private equity firm Hicks Muse Tate & Furst (now HM Capital).[3] Lyndon Lea and Robert Darwent separated the European affiliate from its ailing American parent, launching Lion Capital as an independent private equity firm.[4] Lion Capital was founded in 2004 by Lyndon Lea, Robert Darwent and Neil Richardson with the goal of creating the leading investment firm focused on the consumer sector.[2] In 2004, Lion Capital completed fundraising for its first private equity fund, Lion Capital Fund I, with commitments from institutional investors of €820 million.[5] Over thirty institutions committed capital to Fund I.[2]

In April 2007, Lion Capital established a North American presence, opening an office in New York.[2] That same year, Lion Capital raised its second private equity fund, Lion Capital Fund II, with approximately €2.0 billion of investor commitments.[6][7]

In 2010, Lion Capital formed its third private equity fund, Lion Capital Fund III, which ultimately included capital commitments of €1.5 billion.[2][8]

In October 2012, the North American office was relocated from New York to Los Angeles.[9]

In May 2016, it was announced that Javier Ferrán will replace Franz Humer as Chairman of Diageo as of 1 January 2017[10] In November 2018, Lion Capital and Serruya Private Equity teamed up to acquire the Global Franchise Group (Great American Cookies, Round Table Pizza, Marble Slab Creamery, Pretzelmaker, MaggieMoo's Ice Cream and Treatery, and Hot Dog on a Stick) from Levine Leichtman Capital Partners.[11] In February 2019, Lion Capital acquired the DMC Group (needlecrafts manufacturers DMC, Wool and the Gang, Sirdar, Tilsatec) from BlueGem Capital.[12][13] During the summer of 2019, Lion Capital reduced its participation in Authentic Brands Group to make room for BlackRock's majority-shareholding move.[14]

Activities

Lion Capital seeks to invest in mid and large-sized companies selling branded products, including apparel, accessories and luxury goods, food distribution and specialty retail.[15] Lion Capital’s directors have resisted diversification into other sectors, claiming that their strategy is to know more about less.[1]

Lion Capital’s team draws on its investing and operating expertise to identify consumer brands with growth potential and implement value creating strategies within these businesses, often through geographic expansion, category extension, product innovation or operating improvements.[16] Lion Capital focuses on companies in Europe and North America.[15]

On June 26, 2019, Chloe Sorvino, a reporter from Forbes magazine, reported that Lion Capital will invest $ 100 million in Gordon Ramsay Holdings Limited, to open 100 restaurants in the United States by the year 2024.[17]

Lion Capital's portfolio has included some of the world's best known consumer brands:[1]

Brand Year acquisition
(or year of investment)
Partner Price for acquisition
(or amount of the investment)
Year sold Price sold
Weetabix Limited 2004 £640 million 2012[18] £720 million (60% sold to Bright Food)
Jimmy Choo Ltd £100 million 2007[19] £225 million
Materne
(Materne, Confipote, Pom’Potes)[20]
2006
Wagamama[21] 2005 £102 million 2011[22] £215 million
Orangina-Schweppes[23] 2006 The Blackstone Group 2009 €2.6 billion
Kettle Foods $270 million 2010[24] $615 million
HEMA (store)[25] 2007 €1.3 billion (estimation) 2018[26] (undisclosed)
FoodVest
(Findus and Young's Seafood)[27]
2008 £1.1 billion
AS Adventure Group[28] 2008 €263 million
Russkiy Alkogol[29] Central European Distribution Corporation
American Apparel[30] 2009 $80 million (investment)
Bumble Bee Foods[31] 2010 $980 million
Picard Surgelés[32] €1.5 billion
AllSaints 2011
Alain Afflelou[33] 2012 €740 million
John Varvatos[34]
Good Hair Day (GHD)[35] 2013 £300 million 2016[36] £420 million
Pittarosso[37] 2014 £295 million
Spence Diamonds[38] 2015
Loungers[39] 2016 £137 million
Great American Cookies[11] 2018 Serruya Private Equity
Round Table Pizza[11] Serruya Private Equity
Marble Slab Creamery[11] Serruya Private Equity
Pretzelmaker[11] Serruya Private Equity
MaggieMoo's Ice Cream and Treatery[11] Serruya Private Equity
Hot Dog on a Stick[11] Serruya Private Equity

See also

References

  1. ^ a b c d "Lion Capital". 1 October 2014. Archived from the original on October 1, 2014.
  2. ^ a b c d e "About Lion Capital". lioncapital.com. Retrieved 12 September 2016.
  3. ^ "Hicks Muse splits from US". Financial Times. 22 January 2005. Retrieved 12 September 2016. (subscription required)
  4. ^ Hipwell, Deirdre. "Lion Capital gets ready to bare its teeth - The Times". thetimes.co.uk. Retrieved 12 September 2016.
  5. ^ "Lion Capital's Lyndon Lea defends his performance". telegraph.co.uk. Retrieved 12 September 2016.
  6. ^ Porter, Kiel (22 August 2011). "Lion Capital hits €1.3bn in latest close". efinancialnews.com. Financial News. Retrieved 26 July 2024.
  7. ^ Kreutzer, Laura (12 February 2010). "Til Key Man Do Us Part: Famous Private Equity Break-Ups". Wall Street Journal blogs. Retrieved 12 September 2016.
  8. ^ "Lion Capital falls short of €2bn target for third fund - AltAssets Private Equity News". 25 June 2012. Retrieved 12 September 2016.
  9. ^ Porter, Kiel (9 July 2012). "WSJ Pro Private Equity". Wall Street Journal. Retrieved 12 September 2016. (subscription required)
  10. ^ "Diageo names Lion Capital partner Javier Ferrán chairman". Reuters.com. 18 May 2018. Archived from the original on May 20, 2016. Retrieved 1 August 2018.
  11. ^ a b c d e f g Jessica Saunders (21 November 2018). "UPDATE Los Angeles, Toronto PE firms buy Atlanta's Global Franchise Group". Bizjournals.com. Retrieved 8 October 2019.
  12. ^ Chris Witkowsky (13 February 2019). "Lion Capital acquires DMC Group from BlueGem Capital". Pehub.com. Retrieved 8 October 2019.
  13. ^ Danielle Wightman-Stone (4 March 2019). "Lion Capital acquires The DMC Group". Fashionunited.uk. Retrieved 8 October 2019.
  14. ^ Miriam Gottfried; Cara Lombardo (11 August 2019). "BlackRock Takes Stake in Owner of Sports Illustrated, Nine West". Wsj.com. Retrieved 8 October 2019.
  15. ^ a b "Lion Capital LLP: Private Company Information - Businessweek". businessweek.com. Archived from the original on January 4, 2010. Retrieved 12 September 2016.
  16. ^ "Lion Capital Approach". lioncapital.com. Retrieved 12 September 2016.
  17. ^ Sorvino, Chloe (June 26, 2019). "Gordon Ramsay Plots 100 U.S. Restaurants With New Private Equity Deal". Forbes. Retrieved July 5, 2019.
  18. ^ Nathalie Thomas (3 May 2012). "China's Bright Food takes 60pc stake in Weetabix". Telegraph.co.uk. Retrieved 1 August 2018.
  19. ^ "Jimmy Choo - Discover Jimmy Choo's Company Page". Businessoffashion.com. Retrieved 12 September 2016.
  20. ^ "Activa Capital to acquire Materne from Lion Capital" (PDF). Activacapital.com. 2 November 2006. Retrieved 1 August 2018.
  21. ^ Bowers, Simon (17 June 2005). "Lion Capital snaps up Wagamama". theguardian.com. Retrieved 12 September 2016 – via The Guardian.
  22. ^ "Certainly sir, here is the bill for Wagamama - The Times". thetimes.co.uk. The Times. Retrieved 12 September 2016.
  23. ^ "Suntory Buys Orangina from Blackstone, Lion Capital (Update3) - Bloomberg". Bloomberg News. Archived from the original on 2014-10-12. Retrieved 2014-09-17.
  24. ^ "Lion Capital sells Kettle Foods for $615m - AltAssets Private Equity News". altassets.net. AltAssets. 30 November 2001. Retrieved 12 September 2016.
  25. ^ "Dutch Maxeda sells Hema retail chain to Lion Capital". Reuters. Reuters. 2 June 2007. Archived from the original on February 2, 2016. Retrieved 12 September 2016.
  26. ^ Croft, Adrian; Meijer, Bart (18 October 2018). "Lion Capital sells Dutch retailer HEMA to Dutch billionaire". Reuters. Retrieved 25 July 2019.
  27. ^ Helen Power (23 July 2008). "Lion Capital buys FoodVest for £1.1bn". Telegraph.co.uk. Retrieved 1 August 2018.
  28. ^ "BELGIUM - Lion completes EUR 263m Adventure deal - Unquote". unquote.com. Retrieved 12 September 2016.
  29. ^ "Not Russian Vodka". Russia-ic.com. 16 July 2008. Retrieved 1 August 2018.
  30. ^ "American Apparel Announces $80 Million Investment by Lion - Bloomberg". Bloomberg News. Archived from the original on 2014-11-26. Retrieved 2014-11-13.
  31. ^ Peker, Emre. "Lion Capital Taps JPMorgan for $980 Million Bumble Bee Buyout". bloomberg.com. Retrieved 12 September 2016.
  32. ^ Finch, Gavin. "Lion Capital Agrees to Buy Picard From BC Partners". bloomberg.com. Retrieved 12 September 2016.
  33. ^ "Lion Capital buys Alain Afflelou - Unquote". unquote.com. Retrieved 12 September 2016.
  34. ^ Karr, Jean E. Palmieri, Arnold J. (8 March 2012). "Lion Capital Acquires Majority of John Varvatos". wwd.com. Retrieved 12 September 2016.{{cite web}}: CS1 maint: multiple names: authors list (link)
  35. ^ "Montagu sells ghd to Lion Capital for 300 mln stg". Reuters. 10 February 2013. Retrieved 12 September 2016.
  36. ^ "Coty Completes Acquisition of GHD". Estetica Magazine. 21 November 2016. Retrieved 25 July 2019.
  37. ^ "Lion Capital to acquire PittaRosso from 21 Investimenti" (PDF). Lioncapital.com. Retrieved 1 August 2018.
  38. ^ Primack, Dan (8 April 2015). "Lion Capital buying Canada's Spence Diamonds". Fortune. Retrieved 11 July 2018.
  39. ^ Neil Gerrard (20 December 2016). "Lion Capital in £137m Loungers takeover". Thecaterer.com. Retrieved 1 August 2018.