PARIS — Private equity funds, increasingly active in the fashion and luxury sector, appear to be circling around Roberto Cavalli.
Officials at Cavalli declined to comment for this story, so the likelihood of a transaction could not be learned. But a source close to the designer said Cavalli has been disappointed with the valuations of several offers he’s received and believes his company is worth upward of 1 billion euros, or $1.25 billion at current exchange. He is said to favor minority investments or is possibly seeking a public offering in a few years.
One of the companies eyeing Cavalli, WWD has learned, is SAB Capital, a new fund established by Sheikh Salah Al-Belawi. SAB has submitted a bid for 60 percent of Cavalli. According to market sources, SAB’s bid is a friendly one, and the principals have good relations with the designer and his wife, Eva, who jointly control the company.
SAB, based in Saudi Arabia, intends to make multiple investments in fashion and luxury goods and currently is looking at two other European firms, the sources said.
Recent months have seen several headline deals involving private equity players, including Change Capital Partners buying Jil Sander, Sun Capital Partners Inc. taking on Stila Cosmetics and Sciens Capital Management LLC and Plainfield Asset Management LLC teaming up for Asprey.
Roberto Cavalli SpA’s 2004 balance sheet, the most recent available, shows the firm posted a net profit of 1.4 million euros, or $1.7 million at average rates for the period, on sales of 97.7 million euros, or $121.1 million. But the designer also has a host of lucrative licensing deals, including one for his diffusion brand, Just Cavalli, via a separate company called Iga Finance BV, based in the Netherlands.
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)