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07/06/2012 Georg Jensen mandate goes to Rothschild, sources say

Proprietary Intelligence

Target

Georg Jensen AS

DS

Financial Rothschild advisor Bidder Vendor Fosun International Ltd Axcel Industriinvestor A/S Consumer: Other
TS DS DS

Story

The mandate to explore sale options for Georg Jensen, the private equity backed Danish luxury goods firm, has been awarded to Rothschild, two sources and three bankers claiming familiarity said. The process is likely to kick off in earnest after the summer break, one of the sources added. This news service reported in April that Axcel, the Danish PE firm with a majority stake in the company, was sounding out Asian buyers, including Hong Kong listed Fosun, for a potential sale of the company. Axcel acquired a 70% stake in the firm in 2001. Both Axcel and Rothschild declined to comment. It has taken time for the PE firm to get to grips with the company's performance, and Georg Jensen only returned to figures in the black in 2010, said one banker claiming familiarity. The turnaround of the business has encouraged a move towards an exit, it was noted. Georg Jensen posted 2010 turnover of DKK 847m (EUR 114m) with EBITDA of DKK 83m, according to Axcels website, and increased this to a turnover of DKK 914m for 2011, with EBITDA of DKK 65m. The Danish company was established in 1904 and has some 100 shops around the world. Jewellery makes up about 50% of sales today, but the company also operates in home ware, watches and silverware. Georg Jensen has enjoyed high appeal in Asia, especially China, Korea and Japan. It produces gold and silver jewellery at its own factory in northern Thailand. Over 40% of sales today are derived from Asia. By Anne-Louise Fogtmann, Kasper Viio and Patricia De Leon

Sectors

SubSectors Manufacture and supply of other consumer products Topics Intel Type Advisory Appointment Auction Cross Border Private equity related Takeover situations Denmark Strong evidence

Countries Intel. Grade

Intelligence 1401624 ID

Source Value

Proprietary Intelligence USD 154m (2011 turnover)

Stake Value N/A

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7/6/2012 8:36 AM