Permira, the private equity fund, took over Valentino, the Italian fashion group, after reaching separate deals with key shareholders, including the Marzotto family, which will be able to reinvest in the company. Thanks to these deals, Permira controls more than 60 percent of Valentino’s capital and is expected to launch a public tender to buy out minority shareholders at €35 per share, in line with the sum paid to controlling shareholders. The offer would run from July 23 to Sept. 7 and be aimed at delisting the company.
At the same time Permira is launching a bid for all the remaining shares in Hugo Boss, a company in which Valentino owns 79 percent of the common shares and 22 percent of the preference shares. Permira is offering €48.33 per common share and €43.45 per preference share, in a tender that started on July 12 and ends on Aug. 20. The fund has no plans to delist Hugo Boss from the Frankfurt stock exchange but could consider the option if it ends up controlling more than 95 percent of its capital.
The transaction seals Permira’s victory over its peer Carlyle, which had sought to take over Valentino with the support of the fashion group’s chairman Antonio Favrin who finally rallied to Permira by agreeing to sell his stake. The takeover is being carried out by Permira’s unit Red & Black Lux. Members of the Marzotto family are due obtain a 25 percent share in Red & Black Topco, which fully owns Red & Black Lux.
Valentino’s board has judged that Permira’s offer is fair and the takeover has been cleared by the European Commission.