PARIS — First puffer jackets and now patchwork coats and dresses, too.
Paris-based investment firm Eurazeo SA is emerging as a bigger and more active player on the fashion scene, disclosing on Tuesday that it would invest 285 million euros, or $396.4 million at current exchange, in Spanish fashion chain Desigual in exchange for 10 percent of its share capital.
The transaction gives the Barcelona-based company an enterprise value of 2.7 billion euros, or $3.72 billion, and follows Eurazeo’s first big foray into the sector with its 2011 purchase of a 45 percent stake in Italian firm Moncler, which went public last December.
Eurazeo said its latest transaction would help Desigual speed up its rollout of stores in Europe, the U.S., Latin America and Japan.
“We’re going to help them expand internationally,” Frans Tieleman, managing director of Eurazeo, told WWD. “They stand for fun, for love, for color. They have a really unique positioning and at an affordable level.”
He noted that France has already become as important as Desigual’s home market of Spain, and Italy, Germany and the Benelux countries possess similar potential.
The brand, known for its wildly colorful and patterned apparel and irreverent image, is strongest in women’s wear and accessories, Tieleman noted, citing footwear, children’s wear and household goods among key growth avenues.
Eurazeo said it would support founder Thomas Meyer and his teams. Proceeds from the capital increase are earmarked for building a state-of-the-art distribution hub to support its global advance.
Desigual entered the U.S. in 2009 and now shows its seasonal collections on the runway during New York Fashion Week.
Eurazeo trumpeted that Desigual has seen its revenues increase tenfold since 2007.
Revenues at Desigual rose 18 percent last year to reach 828 million euros, or $1.1 billion at average exchange, with an earnings before interest, taxes, depreciation and amortization margin of 29 percent.
As of Dec. 31, Desigual operated 405 stores in 19 countries. It also distributes its collections via 2,500 corners in department stores and some 11,000 multibrand doors, according to Eurazeo.
“Eurazeo sees the potential of the brand as a global force,” Borja Castresana, Desigual’s chief marketing officer, said in an interview. “The partnership brings new experience, new geographies and geographical knowledge; it means more consolidated product lines and a dialogue between the two companies to establish our position.”
Eurazeo’s portfolio spans some 5 billion euros, or $6.88 billion at current exchange, in assets and the firm has investments in hotel operator Accor, real estate player Foncia, rental firm Europcar and energy specialist Rexel.
According to market sources, Eurazeo has also had its eye on Carven, a fast-growing French fashion house helmed by buzzy designer Guillaume Henry.
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
The psychedelic fashion that pervaded the ’60s is back with an exhibit at the @museumofcityny. “Mode New York: Fashion Takes a Trip” chronicles the changing styles from 1960 through 1973 and features designers such as @ysl, @oscardelarenta and more. The exhibition, which is on display through April 1, is organized into four periods: First Lady Fasion, Youthquake, New Bohemia and New Nonchalance. Pictured here is model Pat Bardonella during the Garvey Day Parade in 1968. (📷: @kwamebphoto) #wwdeye #wwdfashion
“People should be a lot more honest in expressing both the dark and light of themselves. We need to give each other the space to do that because it’s the only way we can grow and evolve,” says @noelwells of her new film “Mr. Roosevelt,” which is largely based on her own struggles. Unexpectedly leaving @nbcsnl in 2014 after just one season, Wells felt set back in her self-esteem and career trajectory. She quickly refocused her energy to more personal projects, which led to the completion of “Mr. Roosevelt.” Read the rest of WWD’s interview with the “Master of None” actress on WWD.com #wwdeye (📷: @jilliansollazzo)
@barbrastreisand is giving fans a chance to see her perform up close in a new concert series, which makes its debut on @Netflix today. From behind-the-scenes takes to her concert performance in Miami last December, the two-hour streaming special captures Streisand in her element. Pictured here is the singer/actress photographed for WWD in 1963. (📷: Palmieri Tony) #wwdeye #wwdarchive
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)