Arta Capital and L Capital have reached an agreement with Pepe Jeans management and shareholder company Torreal to acquire 27.9% of the London-born brand's shares for 85 million Euros.

Pepe Jeans autumn-winter collection 2010/11

Through this agreement, Arta Capital will have a 16.4% stake in Pepe Jeans, for which it will invest 50 million Euros, while L Capital allocated 35 million Euros to acquire 11.5% of the brand’s shares.

Following the signing of this deal, Torreal holds 31% of the capital compared to 30% for the label’s management.

Both Arta Capital and L Capital indicated that this move into Pepe’s shareholding would provide capital funds to consolidate the “company's leadership in the European market and to continue its expansion plans in other regions such as USA, Latin America and Asia”, the investor group just announced.

Coming along far from its birth in 1973 with a market-stall at London's renowned Portabello Market, Pepe Jeans clothing retailer, now has a workforce of 2,000 employees and a presence in Spain, Portugal, U.K., France, Germany and Italy. Pepe group’s principal brands are Pepe Jeans and Hackett.