The Board of Directors of Mariella Burani Fashion Group (MBFG) approved, late on June 29, 2007, the sale of its Multi-brand Retail operations comprised of 100% of the equity of Revedi Spa, Revedi Sa, Bernie’s AG and Don Gil GmbH to Abacus Invest, a private equity fund promoted by Paolo Vacchino and Luca Sangalli, that owns 45% of Phard Spa, a women’s apparel company.
The sale of the MBFG Multi-brand Retail Division is consistent with the Group’s strategic plan to focus on its leather goods and fashion jewellery operations, businesses characterised by higher margins.
With the sale of the Multi-brand retail division, the Group’s leather goods and fashion divisions are expected to generate over 65% of 2007 revenues, a target achieved three years earlier than provided in the Group’s original business plan.
The Multi-brand Retail operations divested include Revedi Spa with 37 outlet stores in Italy and 5 stores in Switzerland, Bernie’s AG with 17 stores in Switzerland and Don Gil GmbH with 38 stores in Austria for a total of 97 stores. The Multi-brand Retail businesses, originally acquired by MBFG for € 17,8 million at an average EV/EBITDA multiple 2,2x, generated € 118,6 million of revenues in 2006.
The purchase price for 100% of the equity of the Multi-brand Retail Division is € 75 million of which € 60 million payable within December 30, 2007 and the remaining in instalments payable over the next three years. The EV/Ebitda multiple on the sale of the division is approximately 10x.
The sale of the MBFG Multi-brand Retail Division is consistent with the Group’s strategic plan to focus on its leather goods and fashion jewellery operations, businesses characterised by higher margins.
With the sale of the Multi-brand retail division, the Group’s leather goods and fashion divisions are expected to generate over 65% of 2007 revenues, a target achieved three years earlier than provided in the Group’s original business plan.
The Multi-brand Retail operations divested include Revedi Spa with 37 outlet stores in Italy and 5 stores in Switzerland, Bernie’s AG with 17 stores in Switzerland and Don Gil GmbH with 38 stores in Austria for a total of 97 stores. The Multi-brand Retail businesses, originally acquired by MBFG for € 17,8 million at an average EV/EBITDA multiple 2,2x, generated € 118,6 million of revenues in 2006.
The purchase price for 100% of the equity of the Multi-brand Retail Division is € 75 million of which € 60 million payable within December 30, 2007 and the remaining in instalments payable over the next three years. The EV/Ebitda multiple on the sale of the division is approximately 10x.
MBFG is expected to reinvest € 15 million in the company that has been established by Abacus Invest to acquire the Multi-brand Retail division as a means of remaining closely involved in the business and ensuring a continued revenue stream from the sale of MBFG brands in these stores. Management of the Multi-brand Retail Division will invest in the new company and remain in key management roles.
Giovanni Burani, CEO of Mariella Burani Fashion Group indicated: “This divestiture represents another step in MBFG’s stated objective of focusing on our leather goods and fashion jewellery businesses and on the continued development of our mono-brand retail network. We will, nevertheless, remain committed and closely involved in the joint development of these top quality businesses as is evidenced by our renewed equity participation therein.“
Source: fibre2fashion.com
No comments:
Post a Comment