BERLIN — Permira Advisors has sold part of its stake in Hugo Boss AG.
On Monday, Red & Black Holding GmbH, a company majority owned by Permira, sold 4.5 million shares, representing 6.4 percent of its total share capital in Hugo Boss, in an accelerated book-building process “met by strong demand from institutional investors.”
The action reduces Permira’s holding to 66 percent. The firm has controlled Hugo Boss since 2007. Red & Black Holding has committed to a six-month lock-up for its remaining stake of 14.6 million preferred shares and 31.6 million ordinary shares.
The preferred share free float will now increase to 19.1 million shares, representing about 57 percent of the preferred shares outstanding. Hugo Boss noted, “The Group expects the higher free float to further improve the attractiveness of the share among institutional investors and to increase the weighting in the MDAX.”
“This disposal is not the start of an exit process,” stated Jörg Rockenhäuser, Permira Germany head. “Hugo Boss has continued to perform very strongly under the leadership of chief executive officer Claus-Dietrich Lahrs and the Permira Funds remain fully supportive of the recently approved company’s growth strategy.”
Additionally, a spokesman for Permira told WWD the company’s goal was to reduce debt and provide additional liquidity, pointing out that the sale represented only a small portion of the business.
The final share offer price was 68.25 euros, or $93.85, for a total consideration of around 307 million euros, or $422.15 million. Dollar figures are converted at current exchange.
Shares of Hugo Boss fell 5.5 percent in trading on the Frankfurt Stock Exchange.
Last week, Metzingen, Germany-based Hugo Boss raised its sales forecast, saying it expected revenues of 3 billion euros by 2015.