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.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast