Private Equity News Italy

Permira acquires the majority of Italy’s Gruppo Florence Fashion House

Investment firm Permira has acquired the majority of Gruppo Florence, which is a hub of Italian luxury clothing and leather goods manufacturers.

The deal was valued at over €1 billion ($1.1 billion). This acquisition highlights a trend among private equity funds, which have turned to a “buy and build” strategy after running out of big brands to buy.

Gruppo Florence was founded in 2020 by VAM Investments, a private equity firm controlled by former Bulgari Chief Executive Francesco Trapani.

Private Equity News Italy

Trapani will stay on as Florence chairman, and the current CEO, Attila Kiss, will also retain his role. With revenues of more than €600 million in 2022, Florence groups 26 companies that design and manufacture clothing, shoes, and other accessories for top luxury names.

Permira acquires the majority of Italys Gruppo Florence Fashion House

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 gain.

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.

This acquisition by Permira is part of its strategy to expand its investments in the luxury industry. The private equity fund has been actively investing in the sector, with a particular focus on alternative investments.

Overall, this acquisition shows the growing interest of private equity firms in the luxury industry’s supply chain. It also highlights the investment preferences of investors, who are increasingly turning to alternative investments. Madrid-based Azora is one of the investment managers that has been raising funds for alternative investments.

In conclusion, the acquisition of Gruppo Florence by Permira is a significant development in the luxury industry. It shows the growing interest of private equity funds in the sector and highlights the investment preferences of investors.


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