Owned by Germany’s billionaire Reimann family, JAB is to sell its 67.66% stake in the premium shoe brand Jimmy Choo. Shares of the brand are reported to have increased 10% on the announcement, valuing the group at more than £720 million (US$922 million). The sale is expected to attract interest from strategic, private-equity firms from the U.S. as well as from the Middle East, China and Russia. Founded in 1996, Jimmy Choo reported operating profits of £42.5 million (US$54.44 million) in full 2016, up nearly 43%, attributed to the success of its luxury ‘Miami’ trainers range. Read more here.

The Reimann family, who also owns American cosmetics brand Coty, has been building an empire composed of coffee brands. The JAB Luxury Holding division, comprised of premium fashion brands Jimmy Choo, Bally and Belstaff, is claimed to make up less than 10% of the Luxembourg headquartered JAB’s total portfolio. On April 24, the Group announced a review of its strategic options relating to its investment in Bally, including a possible sale of the company.

“Since investing in Bally in 2008, JAB Luxury has continued to support the long-term development of the company and its leading brand. JAB has however made significant investments in coffee and related areas in recent years, and as a result, now considers its investment in luxury as non-core. JAB has therefore made the strategic decision to focus on its successful core businesses of consumer goods, including Coty”, said a statement. “We consider disposals of JAB’s luxury business make sense as they do not offer the same cost synergy advantages as the company’s other businesses in the fast-moving consumer goods sector, nor have they provided JAB with any dividend income”.