LONDON — Synova Capital, a London-based private equity group, said it has invested in The Lunan Group, which owns the midrange handbag brands Fiorelli and Modalu.
This story first appeared in the July 29, 2008 issue of WWD. Subscribe Today.
The company did not disclose the financial terms of the deal, but British press reports have estimated that Synova acquired The Lunan Group for between 15 million and 30 million pounds, or $29.2 million and $59.8 million. The company said Fiorelli, which is sold across the U.K., Germany, Sweden and South Africa, has a 13 percent share of the handbag market in the U.K. Following the deal, Stuart Lunan will remain as chief executive officer of The Lunan Group, while Leo Gestetner, a co-founder of Brands Etc., whose businesses include the lingerie brand Myla, has been appointed executive chairman. Marlies Spiekman, formerly finance director of LVMH Moët Hennessy Louis Vuitton’s leather business in the U.K., has been made chief financial officer.
“Synova Capital’s decision to invest in the business, together with the appointment of Leo and Marlies, gives the group the management expertise and financial resources to realize our international growth strategy, while maintaining our strong performance to date in the U.K.,” said Lunan.
Synova Capital was founded last year by Poju Zabludowicz, Philip Shapiro and David Menton. Paul Myners, a former chairman of Marks & Spencer, joined Synova as investment committee chairman in May.