Permira increases Valentino stake again(3)

European buyout firm Permira has upped its stake in Valentino to 60.2 percent, as it seeks to buy out the Italian fashion brand.

Permira has increased its holding in Valentino Fashion Group to 60.2 percent, after buying a further 18.95 percent stake for €491.4 million ($669 million).

The buyout firm bought the stake for €35 per share from Italian corporate advisory firm Canova Finanziaria.

Permira originally increased its stake in the fashion brand to 29.6 percent in May. Soon afterwards, it entered exclusive negotiations with the Italian Marzotto family, Valentino’s second biggest investor, to acquire another 24 percent stake, but it has not yet managed to agree this deal.

The 60.2 percent that Permira now owns comprises the original 29.6 percent stake, an 11.6 percent stake previously bought from Italian shareholders PFC, Veninvest and GDDR, and the 18.95 percent acquired from Canova.

Permira made a bid for Valentino in June that valued the business at €2.6 billion. It is currently negotiating a convertible bond agreement with the Marzotto family to acquire another 12.4 percent of the share capital.

Traditionally not a target for private equity capital, the luxury fashion sector has recently been attracting considerable interest from buyout firms. Towerbrook Capital Partners bought iconic UK fashion brand Jimmy Choo in February from Lion Capital for £185 million (€280 million, $362 million), generating a return of 2.25 times Lion’s original investment.