L Catterton Acquires Value Retail for $1.9 Billion

L Catterton, the private equity firm supported by LVMH, has agreed to acquire Hammerson's stake in Value Retail for an enterprise value of approximately £1.5 billion ($1.9 billion), which includes nine luxury outlet properties, notably Bicester Village in the UK. The deal is expected to generate cash proceeds of £600 million for Hammerson, aiding its ongoing strategy to sell assets and reduce debt amid declining retail property values. Hammerson's shares surged by over 10% following the announcement, reflecting investor optimism related to stock buybacks and increased dividend payouts. The acquisition allows L Catterton to exert more control over prime retail locations, aligning with its strategy of investing in high-value properties. The transaction, set to complete in the second half of this year, positions Hammerson to focus on urban real estate with stronger returns. This acquisition marks a significant step for L Catterton in the luxury retail market, enhancing its portfolio that already includes well-known fashion brands.