Buyers circle Permira-backed Valentino

Notable interest comes from Spanish beauty and fashion group Puig, which recently acquired a 45% stake in French high-fashion house Hèrmes for €16m, and the Asian markets. It is not known whether Permira is considering exiting the group four years after its initial investment.

Under Permira's management, the iconic fashion company has undergone successful restructuring and recapitalisation following a period of leadership woes and declining revenues. A return to positive EBITDA was reported by the company in the first half of 2011, and annual turnover of €320-330m is expected.

In June 2007, Permira launched a €5.3bn deal that later concluded with the 100% acquisition of Valentino alongside a significant holding in Hugo Boss, understood to have accounted for two-thirds of Valentino's turnover in 2006. Permira's offer surpassed that of private equity firm Caryle.

Initial investment gave Valentino an enterprise value of €2.6bn and was made in exchange for a 29.6% stake in the company via Permira's Luxembourg-based holding company Red & Black Lux Sàrl (R&B). Permira continued the acquisition of the company from minority shareholders and the company's eventual delisting. Gianluca Andena led the initial acquisition of Valentino for Permira.

In 2009, Permira completed the recapitalisation of Valentino Fashion Group, controlling shareholder of Hugo Boss following Permira's 2007 acquisition of remaining shares in the company, reducing Valentino's debt by one third to approximately €1.5bn. Permira committed new equity to the company as part of the recapitalisation, which included €100m of long-term committed revolving credit facilities to support the business. Reorganisation of the group concluded with the separation of the business carried out by Valentino Fashion Group and Hugo Boss, which both continue to be owned by R&B albeit separately. Permira currently holds a 70% stake in the Valentino Fashion Group.

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• Topics
• Southern Europe
• Permira
• Italy