Permira divests further Hugo Boss shares

The GP's stake in the company is expected to stand at around 14% following the placement.

Approximately 76% of the share capital of Hugo Boss has been placed on the MDAX. The company's share price has risen to almost €108. Red & Black Lux, the holding company of Hugo Boss, has committed to a lock-up period of 90 days for the remaining shares.

Permira has also reached an agreement with the Italian holding companies PFC and Zignago Holding, owned by the Marzotto family, to sell €500m worth of Hugo Boss shares. This is likely to represent a shareholding of around 7.6%.

The announcement marks the company's fourth share placement in the last 12 months. 4.9 million shares were placed in December, leaving the GP with a 32% shareholding. According to reports, the sale amounted to approximately €500m and saw the share price fall to around €102.

In September 2014, Red & Black placed 7.9 million Hugo Boss shares, reducing Permira's stake in the company from 50% to 39%. The sale was set to raise up to €845m for the investor.

In May, Permira placed a 5.6% stake worth around €400m. A 10% stake comprising 7 million shares was placed one year previously, generating around €612m in proceeds. The private equity house first placed 4.5 million shares in November 2011, leaving it with a 66% shareholding.

Permira recapitalised Red & Black in October last year. The GP's main investor, SVG Capital, realised £110.9m while retaining a stake worth £308.6m.

The GP acquired Hugo Boss in July 2007 via its portfolio company Valentino Fashion Group. It backed the purchase of the 49.9% of shares Valentino did not already own for €1.6bn.

Headquartered in Metzingen, Hugo Boss is a luxury fashion and accessories retailer that employs 12,500 staff. Founded in 1924, it generated sales of almost €2.5bn in 2013.

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

• Topics
• DACH
• Exits
• Consumer
• Germany
• Permira