MILAN — Gruppo Forall, which manufactures and distributes the Pal Zileri men’s wear brand, has teamed with a partner, Arafa Holding of Egypt, in a bid to further develop its business.
Arafa has taken a 35 percent stake in Forall through a capital increase, at a total cost of 25.3 million euros, or $35.6 million. The deal values Forall at 72.3 million euros, or $101.2 million.
Arafa is listed on the Cairo and Alexandria stock exchanges and is one of the country’s leading fabric and apparel companies. It also operates retail chains in the U.K. and Northern Europe. Arafa, with sales of more than $300 million and net profits of $30 million, counts approximately 12,000 employees.
Production of Pal Zileri will remain in Italy, in the Vicenza area.
Forall, which was founded in 1970, expects to report 2008 sales of 140 million euros, or $191.8 million at current exchange. The company has 36 directly operated stores and 221 franchisees, as well as a network of 1,300 multibrand stores in more than 70 countries.
Aronne Miola was appointed president of the board and Marco Barizza remains the group’s chief executive officer. Gianfranco Barizza takes on the role of honorary president.