Peru’s BabyCottons sold to L Catterton and Grupo de Narvaez
Mar 9, 2018
LVMH’s investment arm L Catterton and Argentinian company Grupo de Narvaez have acquired South American childrenswear brand BabyCottons for an undisclosed sum. The purchase follows their investment in Argentinian lingerie company Car Cuore in October 2017.
Francisco de Narvaez, chief executive of the group, said in a press release that the BabyCottons acquisition marks a key step in his strategic plan of positioning the business as a leading international fashion group.
“We expect to double BabyCotton’s revenue in the next five years through international growth, the launch into new markets and by strengthening its presence in the countries it is already well known,” said Narvaez.
Dirk Donath, managing partner of L Catterton Latin America, highlighted BabyCottons as a strong and internationally recognised brand. “BabyCottons is a brand that shows great potential for growth in new and existing markets”, he said as he confirmed plans to expand the brand’s product categories and design proposition.
BabyCottons was founded by Maria Paz de la Piedra in Peru in 1999, and was taken to an international level after being acquired by Paraguayan group Vierci in 2011. It currently has more than 30 directly-operated and franchised stores in Argentina, Peru, the United States, Colombia, Ecuador, Kuwait, Mexico, Paraguay and the Dominican Republic.
In October 2017, L Catterton and Grupo de Narvaez acquired lingerie brand Caro Cuore with a view to becoming a leading retail group in the clothing sector in Latin America. The lingerie brand operates more than 300 stores in Argentina and sells over 1.4 million garments per year.
L Catterton first linked with Grupo de Narvaez in February 2017, when the private equity company invested in womenswear company Rapsodia, where Francisco de Narvaez has a stake. According to Narvaez, the Rapsodia deal marked L Catterton’s first strategic move into the Argentinian clothing market.
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