Artá Capital and L Capital have reached an agreement for the acquisition of 27.8% of the Pepe Jeans Group. This joint investment comes to €85M, of which Artá Capital will contribute €50M (16.4%) and L Capital €35M (11.5%). They will carry out the operation through a purchase from the current shareholders, following where Artá Capital and L Capital will become preference shareholders in the company together with Torreal and the management team. Artá Capital and L Capital’s entry in the shareholding structure aims to help consolidate the company’s leadership in Europe and to continue with its expansion plan in Europe and other regions (US, Latin America and Asia) that the management team has developed so successfully in recent years.

The Pepe Jeans Group management team stated: “The entry in the Group of two shareholders with the scope of Artá Capital and L Capital is an important boost for the management team and for the strategy which the team and Torreal have carried out over the past five years. Furthermore, the characteristics of these investors lead us to believe that their participation in the capital will be very beneficial to the company and will contribute to the development of the Group’s brands on the international level.”

The Group’s closed the year (31 March 2010) with €347.3 M in sales and €51.4M in EBITDA (18% over the previous year) and a solid financial position that has been reinforced by the recent refinancing of the debt (which at present is less than 1.5x EBITDA) led by BBVA, La Caixa and Barclays.