Carlyle buys Ergon’s Golden Goose

Tapping its upper-mid-market vehicle Carlyle Europe Partners IV, Carlyle fully acquired the business from existing majority shareholder Ergon and the holding company Zignago Holding, as well as the company's founders and management team members.

According to press reports, the deal valued the business at €440-450m, representing 10x the company's €45m EBITDA. Buyout firms BC Partners, Lion Capital, Charme, Chequers Capital Partners, General Atlantic, Riverside and Permira were reported to participate in the auction process led by Lazard. Permira is understood to have made an unsolicited offer of €300m.

The GP aims to boost the company's market penetration, particularly across the US and Asian markets.

The deal marks Carlyle Europe's fourth investment in the European fashion and apparel sector, following the acquisitions of Moncler, TwinSet Simona Barbieri and Hunkemöller.

Previous funding
In May 2015, Ergon acquired a majority stake in the business via its Ergon Capital Partners III vehicle from the Italian buyout house Syle Capital – formerly known as DGPA – and the investment firm Riello Investimenti, alongside the company’s founders, in a deal understood to be worth €100m.

As part of the deal, Zinago acquired a minority stake in the business, while the founders retained a 13% stake and the management team a 3% stake, according to press reports.

DGPA and Riello acquired a 75% stake in the business in March 2013 in a €40m EV deal, unquote" understands.

Company
Established in 2000, Golden Goose is an Italian producer of luxury sneakers. It generated revenues of €100m in 2016, a 30% increase on the previous year, when the business reportedly posted a turnover of €77.9m with €19.1m EBITDA and €18.2m net debt. The management team expects to generate revenues of €140m in 2017.

According to a statement, the Italian market accounts for 60% of the company's sales. The company is headquartered in Venice and has also a presence in the UK, France, the US, Japan, South Korea and China.

People
Carlyle Europe Partners – Marco De Benedetti (managing director, co-head).
Ergon Capital Partners – Emanuele Lembo (managing partner).
Golden Goose – Roberta Benaglia (chair, CEO).

Advisers
Equity – DVR Capital (corporate finance); Bain & Company (commercial due diligence); KPMG (financial due diligence); Latham & Waltkins (legal).
Vendor – Lazard (corporate finance); The Boston Consulting Group (other due diligence); PwC (tax); Gianni Origoni Grippo Cappelli & Partners (legal).

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