Tags: blackstone | versace | fashion | europe

Blackstone Agrees to Purchase 20 Percent of Versace for $287 Million

Thursday, 27 Feb 2014 07:31 AM

Gianni Versace SpA, the Italian fashion house that features Lady Gaga in its latest advertising campaign, agreed to sell a 20 percent stake to Blackstone Group LP for 210 million euros ($287 million).

Blackstone will inject 150 million euros into Versace and pay 60 million euros for shares owned by the Milan-based company’s family owners, the parties said in a statement. The transaction values Versace at 1 billion euros, they said.

The deal marks the end of a lengthy search by Versace’s family owners to find an investor in the maker of $215 sunglasses and $5,925 bomber jackets after hiring Goldman Sachs Group Inc. and Banca IMI SpA in 2012. The fashion company, founded by the late Italian designer of the same name in 1978, said last year it plans to use the investment to fund growth before selling shares to the public in three to five years.

Sales should grow 10 percent or more a year through that period, Chief Executive Officer Gian Giacomo Ferraris told Bloomberg News in September. In 2012, Versace reported earnings before interest, taxes, depreciation and amortization of 44.5 million euros on revenue of 408.7 million euros.

The fashion and luxury industry is consolidating as large groups such as LVMH Moet Hennessy Louis Vuitton SA seek new sources of revenue and small companies turn to investors to help fund growth.

Donatella Versace and her brother Santo Versace have helped run the company known by its Medusa-head logo since their brother Gianni’s murder in 1997. Donatella serves as creative director, while Santo is chairman.

Blackstone, the world’s largest private-equity firm, also owns Jack Wolfskin, a German outdoor apparel specialist.


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Gianni Versace SpA, the Italian fashion house that features Lady Gaga in its latest advertising campaign, agreed to sell a 20 percent stake to Blackstone Group LP for 210 million euros ($287 million).Blackstone will inject 150 million euros into Versace and pay 60 million...
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2014-31-27
Thursday, 27 Feb 2014 07:31 AM
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