US-based private equity firm Kohlberg Kravis Roberts (KKR) has entered into a definitive agreement to buy 65% stake in French luxury apparel retailer SMCP Group for around €650m.

Under the deal, the management team that includes Judith Milgrom, Eveyne Chétrite, Frédéric Biousse and Elie Kouby will own 35%.

Earlier in January 2013, the retailer had called for bids to acquire the stake owned by its stakeholders LVMH-owned L Capital and Florac.

The retailer reported revenues of €350m for the year 2012.

SMCP, in partnershio with KKR, plans to expand business in potential markets including the US and Asia.

The retailer has outlined plans to launch 150 outlets in 2013, majority of which are being planned out of its home market.

The first two stores are slated to open in Shanghai, China in July 2013, while four additional stores are planned for the end of the year.

Commenting on the acquisition, SMCP Group CEO Frédéric Biousse noted that the company is delighted to form a partnership with KKR.

"We look forward to working with KKR as we accelerate the international expansion of our brands, particularly in the United States and Asia," he added.

"KKR’s global presence and extensive experience and track-record in the international retail sector will be important assets in helping us continue our growth trajectory."

KKR France managing director and partner Jacques Garaïalde added: The Company has developed strong French brands with international appeal, and high quality products at affordable prices that meet the needs of consumers around the world. We are
pleased to support the team in their growth strategy."

SMCP currently offers affordable luxury apparel segment across four brands Sandro, Sandro Men, MAJE and Claudie Pierlot through 570 outlets.