Permira sells Hugo Boss shares

The sale of the 4.5 million shares, which represents 6.4% of the company, is expected to generate €307m for the investor. Permira is selling its holding through its Red & Black Lux SARL holding. Following the sale, Red & Black will have a 66% stake and 89% of the voting rights in Hugo Boss.

According to media reports, the shares will be sold by Citigroup for €67.75 to €68.50. The agreed lock-up period is six months.

The sale increases the free float of Hugo Boss shares by one third to 57%. Proceeds from the share sale will remain within the Red & Black holding group and will be used for debt repayment.

Previous funding
Permira backed the acquisition of Hugo Boss by its portfolio company Valentino Fashion Group in July 2007. The investor took the 49.9% shares in the listed fashion designer which were not already owned by Valentino for €1.6bn.

Company
Founded in 1924, Hugo Boss Group is a luxury fashion retailer based in Metzingen and employs about 10,000 people. The company generated sales of €1.7bn in the fiscal year of 2010. In the first half of 2011, the firm had a turnover of €945m and an EBITDA of €195m.

People
Jörg Rockenhäuser is CEO of Permira Germany.

Advisers
Equity - Freshfields (Legal); Ernst&Young (Tax due diligence); Citi (Bookrunner)

 

 

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