Blackstone wins race for Versace

The deal gives the firm an enterprise value of €1bn.

The GP beat rival interest for the asset from Fondo Strategico Italiano, Ardian, Permira, Clessidra and Bahrain-based Investcorp – the latter understood to have come close to winning the asset.

Donatella and Santo Versace will remain at the helm of the company following the deal. Blackstone will take one seat on the board.

Versace will use the fresh funding to invest in its retail network in existing and emerging markets. The firm will also develop its portfolio of brands, with particular attention to Versus Versace, and boost its product offering with a focus on accessories. Its e-commerce business is also expected to increase its profile.

The pace of investment in the Italian fashion sector has increased recently, with dealflow rising by 125% in 2013 compared to the previous year, according to unquote" data. Deals included EmCap's investment in luxury shoemaker Moretti and Clessidra's entry into the shareholding of high-end jewellery and watchmaker Buccellati. And performance in the sector has been strong; Italy was home to the strongest market debut of 2013, when shares in private equity-backed jacket-maker Moncler surged by almost 50% on the first day of trading.

Company
Founded in 1978 and headquartered in Milan, Versace is a luxury fashion brand established by Gianni Versace. The firm designs, markets and retails luxury clothing, accessories, make-up and home furnishings across the various brands in the Versace Group.

Versace will announce its 2013 results at the end of March. The firm expects to report revenues of €480m and EBITDA of €69m.

People
Stephen Schwarzman is CEO of Blackstone.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Southern Europe
• Consumer
• Expansion
• Italy
• Blackstone Group