MILAN — Italy’s Brioni is finally in the shop window.
After the luxury apparel label tapped BNP Paribas in November to help sell a 20 to 25 percent stake, a dossier is expected to go out to a short list of potential investors next week, sources said Thursday. According to market speculation, these may include Mediobanca, PPR and LVMH Moët Hennessy Louis Vuitton.
Brioni, PPR and LVMH declined to comment, while Mediobanca did not return calls.
Brioni’s controlling shareholders, who are descendants of the company’s founders, are looking for a 100 million euro investment, or $125.4 million at current exchange, to ease debts and develop the business — including buying an accessories plant — with a view to listing on the Bourse in four or five years, sources said. Brioni bought out former chief executive officer Umberto Angeloni for an estimated 80 million euros in 2006.
“In effect, the family wants to recoup that sum,” sources said.
Brioni has yet to release figures for 2008, although sources estimated earnings before interest and taxes hit 40 million euros, or $58.9 million at average exchange, on revenues of 200 million euros, or $294.3 million, valuing the company at 400 million euros, or $588.5 million. In 2007, Brioni’s EBIT gained 26 percent to 31.4 million euros, or $48.6 million, on sales of 206.5 million euros, or $319.74 million.
Brioni is expected to attract wide interest from cash-rich operators as the company has a strong brand, a profitable and growing business, and men’s wear, which accounts for around 90 percent of turnover, is viewed as an attractive category for emerging markets.
“Everyone is going to look at it,” sources said. “Although [Brioni’s owners] may have to give up a bigger stake than planned.”
With current earnings multiples deflated due to worsening market conditions, a valuation closer to 300 million euros, or$376.3 million, is more likely, sources said. Moreover, a strategic or industrial investor would want a majority stake, particularly given Brioni’s complicated family ownership, they said.
“The value is declining and equity keeps going up,” sources said.
Brioni has three co-ceo’s: Andrea Perrone, who is the grandson of co-founder Gaetano Savini; Antonella De Simone, who is the granddaughter of co-founder Nazareno Fonticoli, and Antonio Bianchini. Perrone runs the company, while De Simone oversees marketing and communications.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews