Jul 15 2012
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Permira Sells Valentino to Private Qatari Investor
Sunday, Jul 15, 2012
(This story was originally published Thursday.)
--Deal valued at EUR600 million
--Permira retains interest in Hugo Boss
--SVG Capital's holding in Valentino valued at GBP59 million
LONDON--Permira Thursday said that it had agreed to sell Italian fashion house Valentino to a private Qatari investor.
Permira didn't disclose the identity of the successful bidder, which it referred to only as "Mayhoola." But the bidder has been widely identified in the media as the royal family of the Gulf state.
The value of the acquisition wasn't disclosed Thursday, but a person familiar with the matter said it was in the region of around EUR600 million.
Permira acquired a controlling stake in Valentino Fashion Group in 2007, which included a majority holding in publicly-listed German company Hugo Boss AG (BOSS.XE), for about EUR2.6 billion.
Permira is retaining its interest in Hugo Boss, which has a free float of around 33%, and will use the proceeds from the sale of Valentino to pay down debt in the German retailer, according to a person close to the situation. Permira holds the majority stake in Hugo Boss with co-investors and founding shareholders the Marzotto family.
SVG Capital PLC (SVI.LN), a listed private equity company that invests in Permira's funds, said that the sale values the company's holding in Valentino at around GBP59 million and in the two businesses at GBP295 million.
Luxury goods makers have broadly speaking ridden out the financial crisis strongly, prompting interest from private equity houses in upscale brands. But Permira's ownership of Valentino has undergone some volatility, with the company earlier renegotiating some debt.
(Marietta Cauchi and Paul Hodkinson of Financial News contributed to this article.)
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