Permira sells Valentino to Qatari investors

Amy King
12 July 2012

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Permira has 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.

The transaction saw Mayhoola acquire Valentino and the M Missoni licence business. MCS Malboro Classics, will be carved out of Valentino Fashion Group and remain under the ownership of Permira's Luxembourg-based holding company Red & Black (R&B), which will continue to hold a majority stake in Hugo Boss.

Private equity buyers began to circle the fashion house in January this year, following its successful turnaround.

Previous funding
In 2007, Permira acquired a 29.6% stake in Valentino Fashion Group from existing shareholder ICG via its Luxembourg-based holding company Red & Black Lux Sàrl, in a deal that valued Valentino at €2.6bn.

Permira continued the acquisition of the company from minority shareholders and the company's eventual delisting.

In 2009, Permira completed the recapitalisation of Valentino Fashion Group, the controlling shareholder of Hugo Boss following Permira's 2007 acquisition of remaining shares in the company, reducing Valentino's debt by one third to approximately €1.5bn. Permira committed new equity to the company as part of the recapitalisation, which included €100m of long-term revolving credit facilities to support the business. Reorganisation of the group concluded with the separation of the business carried out by Valentino Fashion Group and Hugo Boss, which both continue to be owned by R&B, albeit separately.

Company
Founded in the early 1960s by Valentino Clemente Ludovico Garavani and Giancarlo Giammetti in Rome, Valentino is an Italian luxury fashion brand. Operations encompass the brands Valentino, Valentino Garavani, Valentino Roma and RED Valentino. It also manufactures M Missoni, Lebole and Marlboro Classics products under licensing agreements.

The firm's revenues for the first half of 2012 have grown by 23% year-on-year.

People
Gianluca Andena led the initial acquisition of Valentino for Permira. Stefano Sassi is CEO of Valentino.

Advisers
Acquirer – Perella Weinberg Partners (M&A); Chiomenti (Legal); Bain & Co (Commercial due diligence).
Vendor – Mediobanca (M&A); Unicredit (M&A); Bonelli Erede e Pappalardo (Legal); Freshfields Bruckhaus Deringer (Legal).
Company – Citigroup Global Markets (M&A); Linklaters (Legal).