MILAN — Mr & Mrs Italy has a new partner. Magnolia, the holding company owned by Fabio Leoncini and Andrea Bucalossi, has inked an agreement to sell 30 percent of Duemmei, which controls the Mr & Mrs Italy brand, to Chinese private equity firm Hony Capital.
As per the agreement, Leoncini and Bucalossi, who holds the role of chief executive officer, will continue to manage and develop the brand. Financial details of the deal were not disclosed.
Mr & Mrs Italy was founded in 2007 and is known for its luxury outerwear and fur-trimmed parkas. Its products are entirely made in Italy. The company has men’s and women’s collections and expects to close 2017 with revenues of 57 million euros. International markets account for more than 80 percent of total. The partnership with Hony Capital is meant to further strengthen the international development of the brand and its strategic positioning on the Asian market.
As reported in June, Mr & Mrs Italy is aiming at doubling sales to $100 million in the next five years.
The company is based in Rimini, Italy. Head of style is Geraldina Bassani Antivari. Since joining the company four years ago, sales have increased from $1.5 million to $47 million.
Mr & Mrs Italy opened its first freestanding store in 2014 in Milan. The brand is distributed worldwide through a network of more than 300 multibrand stores, along with nine directly operated stores and four franchised ones, by the end of year. There are banners in New York, on Madison Avenue; in Miami at Bal Harbour; two in Hong Kong, and units in Shanghai and Beijing.
With average retail prices ranging from $3,000 to $5,000 for outerwear, the label offers embroidered fur-trimmed track suits, athleticwear, sportswear and such accessories as handbags and fur-trimmed slides. Gigi Hadid and Rihanna were a few of the first celebrities who spontaneously wore the label publicly.
The detachable fur-lined hoods of hoodies have become popular with women, especially in Asia.
Hony Capital, founded in 2003 and sponsored by Legend Holdings, specializes in buyout investment. It has $10 billion in assets under management. The investors of Hony Capital include Legend Holdings, the Chinese Academy of Sciences Holdings, the National Social Security Fund, China Life Insurance and leading investment institutions such as Goldman Sachs, Temasek, European and U.S. pension funds and endowment funds. It has made more than 90 investments through more than 14 years of investment practice. Hony’s target industries include consumer, tourism, media and technology, health care and advanced manufacturing. Hony has been actively investing in cross-border deals since the buyout of CIFA, an Italy-based construction machinery company, with the portfolio company Zoomlion in 2008. The most recent cross-border investments include U.S.-headquartered coworking office space pioneer WeWork, U.K. casual dining chain PizzaExpress and Hollywood film studio STX.
The Focus Team Private Equity of BonelliErede assisted Hony Capital in the deal, while Latham & Watkins worked with the selling party.