Permira places 4.9 million Hugo Boss shares

Harriet Bailey
15 December 2014

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Red & Black Lux, the Permira-backed holding company of Hugo Boss, has placed a further 7% of its stake in fashion chain Hugo Boss.

The private equity firm's shareholding now stands at 32%. The amount of shares in the company to have been floated on the MDAX is 66%.

According to media reports, the sale reaped around €500m. Shares in the company fell to just below €102 each, a decline of 1.6%. Red & Black has committed to a lock-up period of 90 days for the remaining shares.

This marks the third free float of shares in 2014 as Permira looks to divest the company it acquired 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.

In September, 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.

The share price fell even lower following that sale, to just under €101 per share.

In May, Permira placed a 5.6% stake worth around €400m. A year previously, a 10% stake comprising 7 million shares was placed, 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 holding onto a stake worth £308.6m.

Metzingen-headquartered Hugo Boss is a luxury fashion and accessories retailer. It was founded in 1924 and employs 12,500 staff. It generated sales of almost €2.5bn in 2013.