SPAIN: Desigual swaps stake for EUR285m investment
Apparel business Desigual has handed over a 10% stake in the company to investment group Eurazeo in return for EUR285m (US$397m) in funding.
Eurazeo said it had secured the deal with Desigual founder Thomas Meyer and planned to support the company’s strategy to continue its expansion in Europe, as well as consolidating recent developments in the US, Latin America and Japan.
Desigual’s revenues have increased tenfold since 2007, with compound annual growth of 29% between 2009 and 2013, reaching EUR828m last year, up 18%, with an EBITDA margin of 29%.
At the end of 2013, the company had 405 stores in 109 countries, plus 2,500 concessions in department stores and a presence in more than 11,000 multi-brand retailers around the world.
Meanwhile, digital sales accounted for 10% of revenues.
“Global brands are a key investment sector for Eurazeo and Desigual is a top performer,” said Virginie Morgan, Eurazeo deputy CEO.
“As a partner, we will support [Meyer] and his management team in accelerating the international expansion of Desigual and establishing it as a world-class brand.”
- Why Inditex is "clear winner" in fast fashion
- Why fast fashion isn't a case of one size fits all
- Brexit blow to global apparel industry confidence
- Sir Philip Green blamed for the collapse of BHS
- TPP tariff phase-out guides Vietnam sourcing plans
- Vietnam mulls wage freeze to boost competitiveness
- VF Corp cuts guidance as Q2 profit plunges 70%
- US Q2 in brief - Carter's, Wolverine Worldwide
- Teijin launches polyester hook-and-loop fastener
- Ethiopia opens flagship textile and apparel park
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- World Textile and Apparel Trade and Production Trends: the EU - June 2016
- Primark Stores Limited: Retailing - Company Profile & SWOT Analysis
- Global market review of lingerie - forecasts to 2020