Permira reaps £111m in Hugo Boss recap

Permira recapitalised Red & Black, the holding company for Hugo Boss. The transaction saw SVG Capital, Permira's main investor, realising £110.9m, while holding onto a stake in the German fashion brand worth £308.6m.

In May this year, Permira sold 7 million shares – or a 10% stake – in Frankfurt-listed Hugo Boss, at a price ranging between €89.25-90.50 and generating around €612m in proceeds.

At the time, Permira stated it would be holding onto the firm, which it originally bought for €5.34bn in 2007, for at least another six months.

Prior to this, Permira sold 4.5 million shares through an accelerated book building in November 2011. After the transaction, Permira held a 66% stake and 89% of the voting rights in Hugo Boss.

Permira is likely to be on the lookout for divestment opportunities while it is raising its fifth large-cap buyout fund, holding the vehicle's first close on €2.2bn in April this year.

The buyout house tried to divest ProSiebenSat.1 at the beginning of 2013 but failed to find buyers for the remaining shares in the German broadcaster. It is understood the GP will now seek a gradual sell-down of its holding.

Company
Hugo Boss is a luxury fashion and accessories retailer based in Metzingen, Germany.

The firm was founded in 1924 and employs 12,000 staff. In 2012, it reported annual sales of approximately €2.3bn.

People
Claus-Dietrich Lahrs is CEO of Hugo Boss. Jörg Rockenhäuser is a partner at Permira.

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• Topics
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