20th Jun 2008 09:04
BURANI DESIGNER HOLDING'S LISTED LEATHER GOODS DIVISION ANTICHI PELLETTIERI ANNOUNCES THAT 3i HAS ACQUIRED A 49% STAKE IN ITS HANDBAGS AND ACCESSORIES DIVISION
Burani Designer Holding N.V (AIM: BRDH), a company offering Italian lifestyle products and services to customers world-wide, today notes that the company's listed leather goods division, Antichi Pellettieri, majority owned by BDH's subsidiary Mariella Burani Fashion Group S.p.A (MBFG), in which BDH holds a 60.93% stake, made the following announcement this morning:
PRESS RELEASE
ANTICHI PELLETTIERI
Cavriago (RE), June 20, 2008
3i ACQUIRES A 49% STAKE IN THE HANDBAGS AND ACCESSORIES DIVISION OF ANTICHI PELLETTIERI
3i, the world's leading mid-market private equity company, and the funds managed by 3i, announce that they have signed a binding agreement with Antichi Pellettieri S.p.A., the Leather Goods Division of Mariella Burani Fashion Group, for the acquisition of a 49% stake of the newly constituted APB Srl ("Antichi Pellettieri Bags" or "APBags"). APB is the holding company of Francesco Biasia, Braccialini, and Coccinelle as well as Mandarina Duck (acquisition to be completed).
3i will invest EUR 128 million in exchange for a 49% stake in APB. EUR 118 million will be exchanged on the date of closing while the remaining EUR 10 million will be paid based on APB's performance.
The proceeds of the transaction will allow Antichi Pellettieri Group to eliminate its outstanding debt resulting in a positive Net Financial Position.
The enterprise value attributed to APBags of approximately EUR 355 million, slightly lower that the value currently attributed to the complete Antichi Pellettieri Group at the date of acquisition (EUR 415 million).
In addition, the Board of Directors of AP has expressed its intention to transfer, as soon as possible, its listing from the Expandi segment of the Italian Stock Exchange to MTA.
THE TRANSACTION
The agreement provides that 3i will acquire 49% of the equity of APB, a newly constituted company fully controlled by Antichi Pellettieri that today holds a 14% stake in Francesco Biasia. Prior to closing, all shares currently held by Antichi Pellettieri in Francesco Biasia, Braccialini, Coccinelle as well as the 100% stake in Mandarina Duck (acquisition not yet closed) will be transferred to APB.
The closing is expected to occur at the end of July, subject to approval from European anti-trust authorities and to compliance with conditions typical for this type of transaction.
Antichi Pellettieri, 3i and APB have agreed terms of a shareholder agreement regulating the governance of APB, restrictions on transferability of APB shares, as well as exit routes for 3i.
Antichi Pellettieri will publish an information memorandum detailing the operation within the terms stated by law.
At closing, according to the terms of the shareholder agreement, 3i will nominate Marco Fumagalli, Marco Piana and Giacomo Santucci (former CEO of Gucci) as members of the Board of Directors of APB.
The substantial injection of capital provided by 3i will sustain Antichi Pellettieri's strategy to fully develop the unexpressed potential of its handbag and accessories brands by consolidating the company's leadership in the Italian affordable luxury sector and by strengthening its presence in emerging Asian markets.
3i Group, quoted on the London Stock Exchange since 1994, part of the FTSE 100, and one of the Europe's 250 largest quoted companies, has invested over €25 billion in companies located throughout the world, including Europe, Asia and America. Selected 3i investments in the Consumer Goods and Retail sectors include: Gant (apparel), Agent Provocateur (lingerie), John Hardy (jewellery), Giochi Preziosi (toys), Printemps China Deparment Stores (high-end retail), and Foster & Partners (design).
APB is expected to accelerate its growth in the Chinese and Indian market, where its presence is currently limited, by leveraging on 3i's extensive network of strategic and industrial partners in the region, such as Printemps China Department Stores, a department store operator focused on luxury and high-end branded fashion and accessories with a network of 12 high-end department stores across China.
The founder of PCD is Alfred Chan, who also owns Ports, active in the design, production, and distribution of fashion apparel and accessories collections with 350 stores in China, North America and Europe, turnover of USD 1.4 billion and a market capitalisation of USD 1.6 billion.
With the help of 3i, APB is expected to generate over €450 million by 2011, driven also by the expected reinforcement of its international distribution network to include the inauguration of 100 boutiques over the next four years.
Antichi Pellettieri SpA will maintain control of the footwear division (brands Baldinini, Sebastian, Cerutti, Missoni, Pfister) and of the leather apparel and prêt a porter collections (Ter et Bantine, Mandelli and Vivienne Westwood). This is the fastest growing division of Antichi Pellettieri Group and is expected to generate revenues of approximately EUR 160 million for the year in progress; revenues in the first five months of 2008 have grown by 38% compared to the same period in 2007.
Giovanni Stella, the CEO of Antichi Pellettieri, stated "We share a common strategy with 3i and are optimistic about the development opportunities provided to APB by the extensive network of strategic and industrial partners that 3i has developed in the emerging markets".
Marco Fumagalli, Managing Director of 3i Italy noted: ""We have found the ideal partner in APB to complement and further extend our international presence in the luxury goods sector. The deal will reinforce our already strong presence in the international luxury goods sector and will allow us to develop synergies among our portfolio companies, generating value for our shareholders.".
Sole advisor in the transaction: Tamburi & Associati - Advisory division of Tamburi Investment Partners S.p.A.
Advisors for Antichi Pellettieri in the transaction were Lagance Studio Legale Associato and Studio Marchesi Colombo Cipolla Mattavelli & Associati;
Advisors for 3i in the transaction: Studio Legale Chiomenti, KPMG, and Value Partners.
Antichi Pellettieri S.p.A. is a European leader in the accessible segment of the luxury goods market with a consolidated international presence. The Group designs, produces, and distributes handbags and accessories, footwear, and leather apparel collections characterised by top quality and innovative design. A flexible business model provides for control at all critical phases of the production and distribution cycle including, product design and development, production planning, raw material procurement, quality control, marketing, public relations, and distribution. Production and logistics functions are outsourced to an established and qualified base of third party contractors, closely controlled by AP to guarantee quality and efficiency.
About 3i
3i is a world leader in private equity. We focus on Buyouts, Growth Capital, Infrastructure and Quoted Private Equity ("QPE") and invest across Europe, the United States and Asia. Our competitive advantage comes from our international network and the strength and breadth of our business relationships. These underpin the value that we deliver to our portfolio and to our shareholders.
www.3i.com
Contacts
Carol Brumer Investor Relations e Strategic Development: [email protected], tel. (+39) 02 76420111
Daniela Zari Direttore Corporate Communication: [email protected], tel. (+39) 02 76015354
Enquiries:
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Burani Designer Holding N.V. |
Tel: +39 027 642 0111 / +39 348 256 1971 |
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Carol Brumer ([email protected]) |
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Citigate Dewe Rogerson |
Tel: +44 20 7638 9571 |
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Kate Delahunty |
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Lindsay Noton |
www.buranidh.com
NOTES TO EDITORS
Burani Designer Holding offers a complementary range of "Italian lifestyle" products and services to an international customer base. The Group is active in the accessible segment of the luxury goods sector through its subsidiary MBFG that provides fashion, leather apparel and jewellery collections to an international client base, and directly in three complementary business areas; Beachwear & Underwear, Wellness & Skincare, and Food Design. BDH, listed on the Alternative Investment Market (AIM) in London in June 2007, focuses on growth through the acquisition of "Italian lifestyle" companies which are grouped into operating divisions in order to benefit from the increased size and the numerous synergies of the Burani Group. Management believes the combination of MBFG's in-depth knowledge of luxury goods markets and products, the strategic shareholders in BDH, the Group's investment approach, and the skills of the BDH management team provide a unique opportunity to create value for shareholders.
Related Shares:
3i Group