Clessidra acquires 90% stake in Roberto Cavalli

Two sources close to the deal told Reuters the transaction values the business at around €390m, equivalent to 16x core earnings.

Following completion of the transaction, Roberto Cavalli will seek to undertake an international expansion strategy. The company's eponymous founder will retain a 10% stake as part of the deal.

The buyout marks the first draw-down from Clessidra third's fund, which is believed to have held a first close approximately halfway towards its €1bn target. The deal was conducted via the Varenne newco, in which international investment firms L-Gam and Chow Tai Fook Enterprises hold minority stakes.

Clessidra and Roberto Cavalli entered exclusive talks in December 2014, with the initial intention of completing the deal by March. However, the transaction has been a long time in the making.

In June 2009, Roberto Cavalli signed a letter of intent to sell a 30% stake in the firm to Clessidra. Discussions ground to a halt in August 2009, however, due to pricing disagreements. Estimates at the time speculated  the deal could be valued at €100m, putting the enterprise value at approximately €300m (around 9x EBITDA) – a significant discount from the asking price initially quoted by the designer.

The fashion house has been courting potential buyers over the past year. In April 2014, media reports stated Permira had entered advanced talks to buy a majority stake for €450m. Reports then surfaced stating VTB Capital, the investment arm of Russian lender VTB Bank, was in talks to buy 60% of the business for up to €500m, valuing the firm at more than 20x EBITDA.

Company
Headquartered in Florence and founded in 1970, Roberto Cavalli is a fashion brand producing leather goods, watches, jewellery and eyewear. In addition to its main Roberto Cavalli brand, the company also sells products under the Just Cavalli, Cavalli Class and Roberto Cavalli Junior brands.

People
Francesco Trapani, who is executive vice-chair at Clessidra and former CEO of Bulgari, has been appointed as chairperson of Roberto Cavalli following the deal. The company has also appointed a new CEO in Renato Semerari, who leaves his position as president of cosmetics and fragrance group Coty.

Norwegian designer Peter Dundas was appointed creative director at Roberto Cavalli in March 2014.

Advisers
Equity – Banca IMI (Corporate finance); Gattai, Minoli, Agostinelli & Partners (Legal).
Company – Bonelli Erede Pappalardo (Legal); BNL BNP Paribas (Corporate finance).
Management – Credit Suisse (Corporate finance).

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• Topics
• Buyouts
• Southern Europe
• Consumer
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• Clessidra Capital Partners
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