Advisors court Permira for Golden Goose stake sale as alternative to IPO

Prospective advisors say they would like to get an audience with the private equity giant, with the hope of bagging a place on a possible syndicate, the sources said; any exit talk is still in the early stages and the owner is open-minded about its options for the asset, they added.

A fourth source said that any talk of meetings was premature and that Permira is in no rush to make a decision.

On the table for the time being are a stake sale and an initial public offering; in both cases Golden Goose’s valuation could stretch to around USD 2.7bn, as reported.

The company would have been a perfect IPO candidate two years ago; however, market volatility and declining sentiment towards European new listings make that option less attractive, all the sources agreed, adding that they would not be surprised if Permira took a view that a private stake sale would be preferable in plotting the next growth phase of the business.

The Venetian company had revenue growth of up to 30% in 2022 to EUR 550.9m, mostly attributed to its direct-to-consumer channels in the Americas and EMEA, while its Asia Pacific business saw a slight decline in sales, according to its filings.

Positive financials could see management become bullish on valuation, but one of the sources cautioned that healthy financials are often not enough to generate generous feedback from investors.

Luxury IPO candidates have seen mixed market performance, he noted, with several postponing listings indefinitely and others landing on their feet; he cited the listing of IDB (spell-out) early in May as an example of a recent luxury listing success.

If the company chooses to go ahead with an IPO, it should forgo a flotation in the US, which was among the listing venues it looked at as recently as last year and should instead take advantage of the local investor base, which is well disposed toward Italian brands in the high performing luxury sector, a sector consultant noted.

By contrast, the business would hardly struggle in finding a new PE owner looking to buy a stake, with a fourth source noting that the interest of Middle East investors toward European luxury powerhouses could become an option that management will see as too hard to ignore.

Permira acquired a controlling stake in Golden Goose in 2020 for around EUR 1.3bn from Carlyle Group, which retains a minority stake, as reported.

Permira declined to comment. Golden Goose declined to comment.

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• Topics
• Exits
• Consumer
• Southern Europe
• Permira
• Carlyle Group