Permira takes control of Italian luxury suppliers hub Florence
25/05/2023 20:14
MILAN, May 25 (Reuters) - Investment firm Permira has
acquired the majority of Gruppo Florence, in a deal which a
source close to the matter said valued the hub of Italian luxury
clothing and leather goods manufacturers at more than 1 billion
euros ($1.1 billion).
The deal announced on Thursday highlights a trend among
private equity funds, which after running out of big brands to
buy, have locked on to the challenges of the luxury industry's
supply chain and turned to a "buy and build" strategy.
Florence was founded in 2020 by VAM Investments, a private
equity firm controlled by former Bulgari Chief Executive
Francesco Trapani, who will stay on as Florence chairman.
Its current CEO Attila Kiss will also retain his role.
With revenues of more than 600 million euros in 2022,
Florence groups 26 companies which it acquired over time from
owners who reinvested part of the proceeds from the sale of
their businesses into the hub.
The companies design and manufacture clothing, shoes and
other accessories for top luxury names.
VAM Investments, the businessmen who are minority
shareholders in Florence and its management will all reinvest
part of the proceeds of the sale into the group, keeping a
significant stake, Florence said in a statement.
Fondo Italiano d'Investimento, a fund controlled by state
investor CDP Equity, will also retain a minority holding in
Florence, while investment holding Italmobiliare will liquidate
its stake with a 78 million euro gain.
"To have contributed to create the biggest platform for the
luxury supply chain in Italy has been a privilege, as well as a
stimulating challenge," VAM Investments CEO Marco Piana said.
The transaction is expected to close in the fourth quarter.
BoFA Securities and Citigroup advised the sellers, while
JPMorgan worked with Permira. UniCredit was the financial
adviser to VAM's reinvestment process.
($1 = 0.9084 euros)
(Reporting by Valentina Za, editing by Gavin Jones)
((valentina.za@thomsonreuters.com; +39 02 6612 9526;))