From today Valentino speak arabic. Red&Black Lux, the vehicle of the fund Allow and the Marzotto family, has reached an agreement with Mayhoola for Investments for the sale of the maison for 700 million euros, more than 20 times the Ebitda. The buyer is a company owned by a primary investor from Qatar, which according to rumors circulated is directly owned by the royal family of the Middle Eastern country. The operation also affects the license Missoni, while Mcs Marlboro Classic, another brand managed by the group, will remain in the hands of Permira.
“Valentino – underlined a Mayhoola representative – has always been a brand of great charm and undisputed positioning. We were impressed by the work done in recent years by the creative directors Maria Grazia Chiuri and Pierpaolo Piccioli and by the entire management team led by Stefano Sassi. Their ability to combine the aesthetics and values defined by the founder Valentino Garavani with a contemporary and sophisticated vision has made the brand extremely current and with great development potential”.
“Our goal – added the Qatari company – is to support the management to achieve a full enhancement of the prospects of this magnificent brand. We believe that Valentino is the ideal starting point to create a wider presence in the luxury sector".
The amount spent by the Qatari company does not even correspond to one-sixth of what Permira had paid out in 2007. Five years ago, in fact, 70% of Valentino Fashion Group (a company that brings together the Valentino brand, Hugo Boss and the MCS and M licenses Missoni) was bought by the London-based private equity fund for around 3 billion euros. Permira had also shouldered a debt of around 2 billion which the British fund almost entirely paid off to CityGroup in 2009.
“We are very satisfied with this operation – stated the managing director of Valentino, Stefano Sassi – and in recent years, despite the ups and downs of the luxury market, the company has always operated with great intensity and with a long-term orientation , aimed at fully grasping the great potential of the brand. The work carried out has led to a significant growth in turnover, equal to approximately 60% between 2009 and 2012. The current positive evolution of Valentino can be further accelerated with the contribution of the new shareholder”.
Valentino closed the first half of 2012 with a 23% increase in turnover compared to the first six months of last year.
