Egypt-based apparel company Arafa Holding has signed an agreement for the acquisition of a 35% stake in Italian fashion firm Forall Confezioni for EUR25.3m (US$34.6m).

Arafa, which wants to be a European market leader in men's wear by tripling its performance by 2012, said it has seized the right moment to close "such a favorable deal".

Established in 1970 in Vicenza, Italy, Forall is the owner of brands including Pal Zileri and Lab. by Pal Zileri. In its audited financial statements for the year ended December 2007, the group reported total revenues of EUR136m with an EBITDA of EUR10.4m.

Pal Zileri has distribution in high-end locations in international markets including Russia, the US, Japan, China and Saudi Arabia.