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http://www.fashionwiredaily.com/first_word/news/article.weml?id=1151
Permira Buys Key Stake in Valentino Fashion Group
Godfrey Deeny
May 16th, 2007 @ 1:00 PM - Paris
UK equity fund Permira has bought a 29.9% stake in Valentino Fashion Group (VFG), owner of the Valentino and Higo Boss labels, in a purchase in excess of $1 billion.
Permira paid the owner of the group’s largest block of shares, International Capital Growth, 782.6 million Euros in a deal that values VFG at 2.6 billion Euros, or $3.5 billion.
Permira beat out a rival, US-based fund Carlyle, which had been in close talks with VFG’s Chairman Antonio Favrin, and widely tipped to win the contest.
VFG owns majority control of Germen’s men’s fashion giant Hugo Boss, which accounts for three quarters of VFG’s 2006 consolidated sales of 1.93 billion Euros, or $2.6 billion.
The acquisition will mean the third change of owners for Valentino since he and his partner Giancarlo Giammetti sold the label back in 1998.
The deal is the latest example of private equity firms growing interest in fashion, and follows the purchase of Jil Sander by Change Capital Partnership and the acquisition of Tommy Hilfiger by Apax Partners.
In Permira’s case, the UK fund set 100%-owned company, Red & Black Lux, to buy the 22 million shares in VFG from International Capital Growth, an investment vehicle controlled by the Marzotto family.
Permira issued a statement saying it “is interested in increasing its shares, also through a tender offer, at a price not above that which was offered to ICG, or 35 euros [$47 per share.”
Of the remaining shares in VFG, Favrin owns close to 20%; the Marzottos some 20.2% through various family branches, while the remainder is traded in the Milan Borsa.
Permira appears poised to gain control of the group, shares in which were suspended on Monday and Tuesday. However, a senior family member, Gaetano Marzotto, when asked by Italian news agency ANSA whether the family would fully sell out to Permira, responded: “everything is still open.”
Established in 2005, Valentino FG manufactures and markets the following labels Valentino, Hugo Boss, Marlboro Classic, M Missoni, Principe and Uomo Lebole. The group distributes its products in more than 100 countries, with over 1,200 single-brand boutiques and some 200 directly operated stores.
Ironically, Valentino’s most recent men’s collection was presented in a runway show inside the Borsa in January, when the designer present elegant suits in Prince of Wales check, tweed, herringbone and dazzling white. ??
Speculation has been rife for several months about a possible takeover of VFG, doubly so as the legendary designer Valentino Garavani, who turned 75 this month, is due to celebrate his 45th-anniversary couture show in Rome the weekend of July 6 to 8. ??
There have been rumors the designer might even announce his retirement at the Rome weekend, even though Sir Val clearly remains in thrall of the limelight. Moreover, attempts to headhunt a successor have floundered, apparently because no one really suitable could be found.
Born Valentino Garavani, the designer launched his label in Rome in the Sixties to go on to become the first Italian to gain international recognition on the par of Christian Dior and Coco Chanel, famously dressing Jackie Kennedy in a white lace dress for her wedding to Aristotle Onassis.
Permira Buys Key Stake in Valentino Fashion Group
Godfrey Deeny
May 16th, 2007 @ 1:00 PM - Paris
UK equity fund Permira has bought a 29.9% stake in Valentino Fashion Group (VFG), owner of the Valentino and Higo Boss labels, in a purchase in excess of $1 billion.
Permira paid the owner of the group’s largest block of shares, International Capital Growth, 782.6 million Euros in a deal that values VFG at 2.6 billion Euros, or $3.5 billion.
Permira beat out a rival, US-based fund Carlyle, which had been in close talks with VFG’s Chairman Antonio Favrin, and widely tipped to win the contest.
VFG owns majority control of Germen’s men’s fashion giant Hugo Boss, which accounts for three quarters of VFG’s 2006 consolidated sales of 1.93 billion Euros, or $2.6 billion.
The acquisition will mean the third change of owners for Valentino since he and his partner Giancarlo Giammetti sold the label back in 1998.
The deal is the latest example of private equity firms growing interest in fashion, and follows the purchase of Jil Sander by Change Capital Partnership and the acquisition of Tommy Hilfiger by Apax Partners.
In Permira’s case, the UK fund set 100%-owned company, Red & Black Lux, to buy the 22 million shares in VFG from International Capital Growth, an investment vehicle controlled by the Marzotto family.
Permira issued a statement saying it “is interested in increasing its shares, also through a tender offer, at a price not above that which was offered to ICG, or 35 euros [$47 per share.”
Of the remaining shares in VFG, Favrin owns close to 20%; the Marzottos some 20.2% through various family branches, while the remainder is traded in the Milan Borsa.
Permira appears poised to gain control of the group, shares in which were suspended on Monday and Tuesday. However, a senior family member, Gaetano Marzotto, when asked by Italian news agency ANSA whether the family would fully sell out to Permira, responded: “everything is still open.”
Established in 2005, Valentino FG manufactures and markets the following labels Valentino, Hugo Boss, Marlboro Classic, M Missoni, Principe and Uomo Lebole. The group distributes its products in more than 100 countries, with over 1,200 single-brand boutiques and some 200 directly operated stores.
Ironically, Valentino’s most recent men’s collection was presented in a runway show inside the Borsa in January, when the designer present elegant suits in Prince of Wales check, tweed, herringbone and dazzling white. ??
Speculation has been rife for several months about a possible takeover of VFG, doubly so as the legendary designer Valentino Garavani, who turned 75 this month, is due to celebrate his 45th-anniversary couture show in Rome the weekend of July 6 to 8. ??
There have been rumors the designer might even announce his retirement at the Rome weekend, even though Sir Val clearly remains in thrall of the limelight. Moreover, attempts to headhunt a successor have floundered, apparently because no one really suitable could be found.
Born Valentino Garavani, the designer launched his label in Rome in the Sixties to go on to become the first Italian to gain international recognition on the par of Christian Dior and Coco Chanel, famously dressing Jackie Kennedy in a white lace dress for her wedding to Aristotle Onassis.
. I loved what Alessandra did at Gucci. She is great with embellished and heavily detailed clothing. I haven't seen her do anything as feminine as Valentino but I'm sure she can do it. 
