Investindustrial in Sergio Rossi carve-out

The carve-out is foreseen to complete in the next few weeks.

According to a source close to the transaction, the spin-off of Sergio Rossi comes as part of a strategy by corporate Kering, its owner since 1999, to refocus its portfolio around core brands. The Italian shoemaker was struggling under its parent and had not been profitable for a while, the same source explained.

Investindustrial's takeover comes nine months after Kering CEO Francois-Henri Pinault told Bloomberg a sale for Sergio Rossi was in the pipeline. The announcement, less than a year after the resignation of CEO Christophe Mélard, came as the brand reported a €10.7m loss.

Investindustrial is understood to have financed the buyout via its fifth fund, which closed on €1.25bn in November 2012, one year after launch.

Over the next few years, the GP will attempt to turn things around for the shoemaker, with plans to focus on international expansion. The firm intends to boost production at a high-tech facility that Sergio Rossi operates in Italy and is contemplating boosting product lines such as handbags and men's shoes.

Company
Founded in 1968, Sergio Rossi is a luxury brand specialising in footwear for male and female customers; in addition, the company designs women's bags and runs a dedicated collection for brides. During the 1970s, the brand grew on the back of a partnership with Gianni Versace and was acquired by the Gucci Group in 1999. Headquartered in Milan, the business currently operates a network of more than 80 establishments across Europe, America, south-east Asia and Japan.

People
Andrea Bonomi, senior partner at Investindustrial, led the deal on behalf of the firm.

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• Topics
• Turnaround/Special Situations
• Southern Europe
• Consumer
• Italy
• Investindustrial