Clessidra buys 30% stake in Cavalli

Reports suggest that private equity firm Clessidra has acquired a 30% stake in fashion house Cavalli in a deal valued at EUR100m. The transactions would value the business at around EUR300m (around 9x EBITDA) - a significant discount from what the designer had initially quoted as an asking price.

Rumours of Cavalli's desire to partner up with private equity began circulating in October 2007, when the company was valued at around EUR2bn. Potential private equity buyers, including Candover, Lion Capital and TPG Capital, began voicing interest in early 2008, as part of an auction process organised by Merrill Lynch. The asking price at this stage was thought to be 16x EBITDA or close to EUR1.4bn. Bids fell well short of this mark, however, and the process was abandoned in the summer.

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• Southern Europe