Permira makes Valentino buyout offer

Permira has made an offer for the entire share capital of part-listed company Valentino Fashion Group and its subsidiary, Hugo Boss. Last month, the UK firm took a minority stake in the €2.6 billion fashion company.

European buyout firm Permira will make an offer for all the shares it does not already own in Italian fashion house Valentino Fashion Group, according to a statement issued to the Italian stock exchange. The company has a €2.6 billion ($3.5 billion) market capitalisation.

It has also made an obligatory offer for Valentino subsidiary Hugo Boss. The offer’s terms were not disclosed.
Earlier this month Permira revealed it had bought a 29.6 percent stake from the Marzotto family, who span Valentino out from its parent textile company. This forced rival buyout group Carlyle to pull out of the bidding for the company.

As a result, Permira was left in exclusive talks with three more members of the Marzotto family to take a further 24 percent stake, at €35 per share. This would value the company at around €2.6 billion ($3.5 billion).

If Permira secures the fashion group, which includes the Valentino, Missoni, Marlboro Classics and Lebole brands,
it would be the biggest private equity deal in the European luxury goods sector to date. Other fashion brands are expected to follow suit and go private, in order to compete against the luxury goods giant LVMH.

Earlier this month US newspaper The Wall Street Journal suggested that Valentino Garavani, the Italian designer who has been with his eponymous label for 45 years, may not stay on if the company is sold.

Other recent deals in the sector include Towerbrook Capital’s recent acquisition of designer shoe maker Jimmy Choo for £185 million ($367 million, €270 million), while fashion group Prada sold Jil Sanders to Change Capital Partners last year and Apax Partners acquired Tommy Hilfiger for $1.6 billion (€1.2 billion).

Permira declined to comment.