Mayhoola for Investments, an investment vehicle backed by a major private investor group from Qatar, is to acquire Valentino Fashion Group from Red & Black, a company indirectly controlled by Permira Funds in partnership with the Marzotto family. Red & Black acquired control of the fashion label through in 2007, as part of a wider transaction which included Hugo Boss.
Mayhoola for Investments S.P.C. (“Mayhoola”), an investment vehicle backed by a major private investor group from Qatar, has agreed to acquire Valentino Fashion Group S.p.A. (“VFG”). The sale and purchase agreement between Mayhoola and Red & Black Lux S.à.r.l. (“Red & Black”), a company indirectly controlled by the Permira Funds in partnership with the Marzotto family, was signed on 11th July 2012.
Through the acquisition of VFG, Mayhoola will acquire Valentino S.p.A. (“Valentino”) and the M Missoni license business, while MCS Marlboro Classics is being carved-out from VFG and will remain under the ownership of Red & Black. Red & Black will continue to own also a majority stake in Hugo Boss, which is not part of this transaction.
The Permira Funds, in partnership with the Marzotto family, acquired control of VFG through Red & Black in 2007, as part of a wider transaction which included Hugo Boss.
A representative of Mayhoola commented: “Valentino has always been a brand of unique creativity and undisputed prestige. We are impressed by the work of the two Creative Directors, Maria Grazia Chiuri and Pierpaolo Piccioli, and by the management team led by Stefano Sassi. Their ability to blend the aesthetic values of the founder, Valentino Garavani, with a contemporary and sophisticated vision, has been instrumental in enhancing the brand’s relevance and establishing a platform with significant future potential. Our vision is to back management for the long term to exploit the full potential of this exciting brand. We believe Valentino is ideally suited to form the basis for a global luxury goods powerhouse”.
Stefano Sassi, CEO of Valentino, commented: “We are delighted with this development. During the past few years, despite swings in the luxury markets, the company has operated with great intensity and remained focused on maximizing the potential of the Valentino brand. This effort should drive a 60% increase in revenues from 2009 to 2012. Our new shareholder will help us to reach our full potential. I would like to take this opportunity to thank the Permira Funds and the Marzotto family for their industrial vision and the support that they have provided to management in implementing the first steps of our long term plan”.
Valentino closed H1 2012 with revenues growing 23% vs H1 2011.
Advisers for this transaction were Perella Weinberg Partners (M&A adviser to the buyer), Mediobanca – Banca di Credito Finanziario S.p.A. and UniCredit (M&A advisers to the seller), Citigroup Global Markets Limited (M&A adviser to VFG), Chiomenti (legal adviser to the buyer), Bonelli Erede e Pappalardo and Freshfields Bruckhaus Deringer (legal advisers to the seller), Linklaters (legal adviser to VFG), Bain & Co. (industrial adviser to the buyer) and PWC and KPMG (accounting advisers).
Contact: Francesca Leoni – Valentino
Permira Advisers LLP
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