Versace Sells 20% Stake In 3~5

(P) after several rounds of intense bidding, Italy's high-end fashion brand Versace (Versace), which hopes to sell about 20% stake to raise funds to expand the global market, has finally identified buyers. A few days ago, the company signed an agreement with Blackstone Group, a private Holdings Company, which will buy 20% of the stake in 210 million euros. < /p >
< p > trading information shows that Versace is valued at 1 billion euros. Under the terms of the transaction, Blackstone will inject 160 million euros into Versace and acquire 60 million Euro Cash shares from Versace Holdings GIVI Holding S.p.A, and Blackstone Group will have a place in the board of directors of the company. < /p >
< p > < strong > Blackstone bid for Chinese card > /strong > /p >
< p > Versace, which is LOGO in Greek mythology, is currently selling many fashion brands including fashion, premium accessories, cosmetics, perfume and household products. It is reported that Versace hired in 2012 to invite Goldman Sachs and Italy United St Paul bank to help investors find out, hoping to expand the global market by selling minority shares to private investors, especially in the potential expansion of Asian and Latin American market expansion. < /p >
< p > Versace currently has only 137 Direct stores, and it plans to expand to 200 in 3 years, especially in emerging markets. Versace CEO Gian Giacomo Ferraris has told the media that demand for high-end fashion brands is growing because of the relatively mature market. < /p >
P, as one of Italy's largest independent high-end fashion brands with international expansion potential, Versace's stake has attracted many powerful investment institutions. In order to win in Versace's stock bidding, all of them have to play a leading role. For example, Blackstone has been exposed by foreign media to play the "China card" in bidding. It emphasizes that the background of shareholders of China's sovereign investment fund (CIC) can bring advantages to its development and network construction in China. < /p >
< p > Versace has made numerous statements that it will not abandon family holdings even if investors or listed companies are introduced. Previously, the group's founder Gianni Versace's sister and creative director Donatella Versace, her 26 year old daughter, Allegra Versace Beck, and her brother and group chairman Santo Versace, respectively, own 20%, 50% and 30% equity. < /p >
< p > Ferraris also said that the company will have a listing plan in the next 3~5 years. We hope that Blackstone's investment can help Versace achieve this plan. In his view, what Versace needs now is a financial investor rather than a strategic investor. < /p >
< p > compared with the other Italy brand Bvlgari (Bulgari) who committed to the Louis Weedon group and lost the family holding power in 2011, it can get more support in the sales channels, customer resources and market promotion, and the brand value can be more embody. A luxury industry personage told the first Financial Daily reporter that even if the family investors holding Versace's choice of institutional investors have high-end brand investment experience and market resources, they may be slightly inferior in terms of future channel resources and customer resources, but the Versace family's control over the enterprise will continue to be reflected, which is the two aspect of the coin. < /p >
< p > < strong > focus on emerging market space < /strong > /p >
< p > after the death of Versace founder, genius a target= "_blank" href= "//www.sjfzxm.com/", designer /a /a Gianni Versace1997, the family brand is hard to achieve. In the most brilliant and prosperous 1996, Versace group's sales amounted to nearly $1 billion 100 million, after which it had a long-term loss of up to 26 million 500 thousand euros. < /p >
In 2009, P was also affected by the financial crisis. Versace also closed all retail outlets in Japan, withdrew from the market and carried out a global downsizing plan for the entire company. According to relevant reports, 1/4 of the business employees were retreated or found their way to maximize their retention of technical positions. < /p >
P, however, led by Ferraris, who took office in 2009, Versace turned into a deficit in 2011. Versace expects revenue to grow by 18% to nearly 480 million euros in 2013, and core profits should grow by more than 50%, at least 69 million euros. < /p >
< p > compared with the shrinking of the mature Japanese market, Versace has been increasing its chips in the Chinese market. In 2011, Versace added 5 new outlets in Greater China to expand its distribution network. In addition to the first tier cities in Hongkong, Beijing and Shanghai, Versace also entered the two or three tier cities of China, such as Zhengzhou, Shenyang and Wuhan. In 2012, when sales continued to rise, Versace increased 10 new outlets in Greater China by 2 times the speed of the previous year. In addition, the reporter also learned that Versace was partly represented by Hangzhou Kenna "a target=" _blank "href=" //www.sjfzxm.com/ "> clothing" /a "Co., Ltd. (a Versace store with Shanghai Mei Long Town Square), called" Kenna dress ", and Kenna clothing was purchased by 70 million yuan for seven wolves in 2011. < /p >
< p > "compared with brands such as LV and Gucci, there is a certain degree of market saturation in China. Versace has such a small high-end brand with high brand value and popularity and reputation. It has a limited number of shops in other markets such as China, and has a larger market promotion space and maneuverability." The industry insiders said that this is also the place where Versace attracts Blackstone. Before that, Blackstone did not invest much in clothing and fashion, including outdoor brand Jack Wolfskin, and cave a target= "_blank" href= "//www.sjfzxm.com/" > shoes < /a > brand Crocs karlochi. < /p >