Design Holding aims for pre-summer Milan IPO

Cristiano Dalla Bona and Micaela Osella
11 March 2022

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Private equity firms Carlyle and Investindustrial are aiming to float portfolio company Design Holdings around the middle of this year, according to several sources familiar with the matter.

Unquote's sister publication Mergermarket previously reported that Unicredit will act as global coordinator alongside JP Morgan and Bank of America on the listing.

The Italian furniture and lighting group also handed out roles to law firms Latham & Watkins and Chiomenti, two sources said.

According to one source, the company is looking at the next quarters for the operation, but another said it is unlikely to be able to pull off the listing before July.

"The business is performing well internationally, and the exposure to the Russian market is very marginal," one of the sources explained, noting that Design Holding's heritage in the industry and strong investor appetite for similar assets should lead to a successful deal.

Another source though conceded that the volatility caused by the Russian invasion of Ukraine could still factor into the timing of the listing.

Design Holdings could eye a valuation of EUR 1.2bn, added the same source. The source said that the equity story is being pitched as a luxury sector play rather than a furniture company investment, which would hopefully lead to a higher multiple.

Earlier last month, Mergermarket first reported that the sponsors had begun preparing Design Holding for a listing on the Milan Stock Exchange.

According to press reports, Lazard was mandated as financial advisor.

Design Holding does not have direct peers on Borsa Italiana and will look at French giants of fashion including LVMH and Kering as its closest peers, as reported.

In 2022, the company hopes to generate revenues of up to EUR 1bn and EUR 200m EBITDA, a 20% margin, which includes the costs of M&A deals struck in 2021, as reported.

Launched in October 2018 by Investindustrial and The Carlyle Group, Design Holding includes brands such as Flos, Louis Poulsen, B&B Italia, Maxalto, Arclinea and Azucena.

Design Holding, Investindustrial, Carlyle, Chiomenti and Latham & Watkins declined to comment.