Police investigate 2007 sale of Valentino to Permira

Amy King
06 November 2012

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Italian police have seized assets worth €65m from the Marzotto family and its business associates under suspicion of tax evasion connected to the 2007 sale of Valentino to Permira, according to reports.

The assets belong to 13 individuals linked to the important industrial family, the Marzottos, and include a 15th century castle and a 25-room villa in Cortina d'Ampezzo. They have been seized to cover the €65m in taxes the suspects allegedly evaded when they reportedly banked a €200m capital gain from the €2.6bn sale of Valentino and Hugo Boss to Permira.

The GP bought the luxury fashion brand from existing shareholder ICG in 2007 via the Luxembourg-based holding company Red & Black Lux Sàrl. The Marzotto family is accused of having avoided Italian tax requirements by using the holding company based in Luxembourg, despite Valentino's official headquarters being in Italy. The family's lawyers deny the accusations.

In July this year, Permira sold Valentino Fashion Group to Mayhoola for Investments, a vehicle backed by a Qatari private investor group, in a deal believed to be valued at around €700m.