Advent to sell Germany’s Takko Fashion -source

* Sale to start in September and end in early 2011 – source

* Takko’s value could be at 1.25 billion euros – paper

FRANKFURT/LONDON, Aug 16 (BestGrowthStock) – U.S. private equity
firm Advent International plans to sell or spin off Germany’s
Takko Fashion by early 2011, a financial source told Reuters on
Monday.
Advent has solicited eight investment banks for proposals to
advise it on its options for Takko, said the person, who asked
not to be named. “An initial public offering is not the main
objective”, the person said.

The divestment process will start in September, and Advent
aims to finish it in early 2011, the source added. Takko and
Advent both declined to comment.

An increasing number of price-conscious Germans have been
turning to discount clothing stores, helping boost sales at
Takko, one of Germany’s largest and fastest-growing clothing
chains, to 900 million euros ($1.2 billion) this year through
April.

That’s up 28 percent since Advent bought the retailer for
770 million euros from rival private equity company Permira
[PERM.UL] three years ago.

Dresdner Kleinwort (CBKG.DE: ) had advised Advent when it
bought Takko and Goldman Sachs (GS.N: ) had advised Permira.

Takko, based in Telgte in northern Germany, was expected to
generate at least 125 million euros in earnings before interest,
tax, depreciation and amortisation (EBITDA) last year, the
Financial Times reported on Sunday.

Bankers said discount retailers were typically valued at 10
times EBITDA, putting Takko’s value at about 1.25 billion euros,
the paper said.
(Reporting by Arno Schuetze, Alexander Huebner, Ilaina Jonas
and Megan Davies; Editing by David Holmes)
($1=.7804 Euro)

Advent to sell Germany’s Takko Fashion -source