Warburg Pincus to acquire majority stake in Reiss
British luxury womenswear and menswear brand Reiss has announced it has entered into an agreement with Warburg Pincus to sell a majority stake in the business, in a deal valuing the retailer at £230 million.
David Reiss, the label’s founder, will retain a significant investment in the business and will remain as Chairman and CEO.
With the partnership, Reiss will be expanded further in the UK and internationally, particularly in North America, Asia and Australia, where it has already achieved a level of success.
David Reiss, founder and Chairman of Reiss, commented, "I am delighted to be working with Warburg Pincus as we take Reiss to the next stage of its development. We have built a great business providing our customers with timeless luxury at affordable prices and I am confident that working together we will be able to build Reiss into a truly global fashion brand."
Paul Best, Managing Director at Warburg Pincus, commented, "As long-term growth investors, we look forward to partnering with David and his team and supporting the global expansion of Reiss. The business has built an enviable position in its core UK market, with a broad and loyal customer base, and we believe there is a significant opportunity to build on this success and accelerate development internationally."
Born in 1971, the brand offering affordable luxury clothing generated sales of £146 million in the year to January 2016. It currently trades from 160 locations in 15 countries.
Its new majority owner, Warburg Pincus, is a private equity firm focused on growth investing. Headquartered in New York, the company’s experience with retail companies include Neiman Marcus in the US, Poundland in the UK and Biba in India. It currently has more than $40 billion in private equity assets under management.
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