Bimba Y Lola seeking buyers to sell majority stake

Sisters María and Uxía Domínguez are once again exploring possibilities of finding a buyer to sell a 70 percent stake in the company to expand their international presence, reports El Independiente. The report adds that the company also roped in Morgan Stanley in September last year to find a buyer and now the investment bank has distributed the sale book among the venture capital funds including Bain Capital, PAI, Permira, CVC, Carlyle and TowerBrook, among others.

Quoting the document, the report further adds that some investors are looking at acquiring 100 percent stake in the company without making any changes to the top management team. Bimba Y Lola opened doors to its first store in Bilbao in 2006 and operates 244 points of sale today. The company is targeting to close fiscal year 2018 with revenues of over 180 million euros (221.6 million dollars) and an EBITDA of 35 million euros (43 million dollars).

While the Dominguez sisters are looking at a valuation of around 500 to 525 million euros (615.6 to 646 million dollars), almost 15 times to the EBITDA, industry sources are of the opinion that the deal would close at a valuation of around 425-450 million euros (523 to 554 million dollars).

Earlier in 2013 as well, Bimba y Lola was exploring a buyer but its negotiations with L Catterton (formerly L Capital) could not reach a conclusive stage.

Picture:Facebook/Bimba Y Lola