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Versace deal with Blackstone values group at 1 billion euros

A sign is seen for high-end retail store Versace along 5th Avenue in New York May 19, 2013. Luxury spending in the United States collapsed after the 2008 financial crisis but roared back to pre-crisis levels by 2012. Sales in the Americas is expected to rise 5-7 percent this year, compared to 6-8 percent in mainland China and 0-2 percent in Europe, according to consultancy Bain & Co. Picture taken May 19, 2013. To match Insight LUXURY-US/ REUTERS/Eric Thayer (UNITED STATES - Tags: BUSINESS LOGO SOCIETY WEALTH)

(Reuters) – Italy’s Versace said on Thursday it had signed an agreement with Blackstone that will see the U.S. private equity firm take a 20 percent stake in the fashion house in a deal valuing the group at one billion euros ($1.37 billion).

A sign is seen for high-end retail store Versace along 5th Avenue in New York May 19, 2013. Luxury spending in the United States collapsed after the 2008 financial crisis but roared back to pre-crisis levels by 2012. Sales in the Americas is expected to rise 5-7 percent this year, compared to 6-8 percent in mainland China and 0-2 percent in Europe, according to consultancy Bain & Co. Picture taken May 19, 2013. To match Insight LUXURY-US/ REUTERS/Eric Thayer (UNITED STATES – Tags: BUSINESS LOGO SOCIETY WEALTH)

Blackstone will inject 150 million euros of fresh capital into Versace and will also buy 60 million euros of shares from family holding company GIVI Holding, the fashion house said.

The deal implies a total enterprise value for Versace of one billion euros.

The Versace family will remain at the heart of the company, the company said.

Versace said it expected to see an 18 percent rise in its 2013 revenues to nearly 480 million euros, while core earnings should increase by over 50 percent to at least 69 million euros. ($1 = 0.7317 euros)

(Reporting by Stephen Jewkes, editing by Isla Binnie)

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