Carlyle Group Buys 400 Million Euros "Dirty Sneakers"

With "

Famous Italy

Golden Goose Deluxe Brand (GGDB) will change its owner again.

According to the world clothing shoes and hats net, the US Private Equity Investment Firm

(The Carlyle Group) beat the rival Permira and General Atlantic, and will invest 400 million euros to buy the brand from GGDB's current main controlling shareholder, Belgium's mid-range market investment company Ergon Capital Partners.

This is the third time that GGDB has been bought in 3 years.

In 2013, DGPA SGR, a private equity fund in Italy, bought the GGDB 75% stake in 45 million euros.

In May 2015, part of the shares were sold to Ergon Capital Partners, while the brand co founder and creative director Alessandro Gallo and Francesca Rinaldo continued to hold the remaining 25% stake.

Although it has changed hands several times, the 17 year old GGDB has indeed been expanding rapidly in the past 3 years under the continuous investment of private equity funds.

In 2014, the brand's annual revenue was only 4700 euros, but last year, the figure was more than 100 million euros, more than doubled.

In the world, GGDB has also opened 8 flagship stores, and has been stationed in 700 brand stores and dealer stores. Overseas sales account for 60%.

GGDB has been repeatedly pferred over the past three years.

2013 - Italy private equity DGPA SGR first bought 75% stake in 45 million euros.

2015 - Belgian end market investment company Ergon Capital Partners takes over.

2017 - Carlyle Investment Group continues to take over 100 million euros.

We have explained in detail why a pair of GGDB shoes "dirty shoes", which cost two thousand or three thousand of the price, will be popular in recent years. From the product itself, the soft leather shoes, suede toe and Italy technology make it feel both texture and comfort. The rut of cool, handwashing and wax brings back the ancient effect from a small white shoe.

Finally, sports and leisure winds, star effects, Korean dramas and social media spread have made people's enthusiasm for sneakers with "dirty for decoration and dirty high sense" spread from Europe and America to Asia.

Private equity funds may also be the potential of GGDB.

According to Mark Vidergauz, the The Sage Group of the US commercial bank, from the year of 2001, more and more small and emerging light luxury or luxury brands began to seek global expansion, and private equity funds began to take the opportunity to enter the fashion investment field.

At that time, people often talked about a case, that is, in 2007, Permira bought Valentino and Hugo Boss 29.9% shares with 2 billion 600 million euros to achieve holding.

Over the past two years, this trend is becoming more apparent.

According to DDT's industry newspaper "Global Powers of Luxury Goods" released in 2016, in 2014, there were only one case of private equity fund in the global top 10 luxury industry investment and acquisition cases, but by 2015, 4 private equity funds had entered the top 10 list.

This is due to the fact that a new round of luxury goods globalization (especially their expansion to emerging markets such as Asia and the Middle East), supply chain integration (such as recent luxury group's control of perfume and eyeglasses and other businesses) and industry integration have led to more mergers and acquisitions in the luxury goods industry. On the other hand, any new market and new consumer groups have great attraction for private equity funds, and luxury goods industry is one of the industries that are facing the biggest change in these two aspects.

But the risk of investing in fashion is much greater than it looks.

If it's not just for short-term gains, investors must learn to respect the designer's creativity, prepare for huge investments, and be patient enough for returns.

Fashionista Lauren Sherman has mentioned the feeling of a private equity investor: "fashion is a high-risk business, and it's not as good as making movies."

People are often tempted by its splendor, but the rate of return on investment is often not satisfactory.

Permira's investment in Valentino and Hugo Boss is regarded as a negative textbook.

At that time, Valentino founder just retired, but Permira did not pay attention to the sustainability of creative leaders. The Alessandra Facchinetti who took over the creative director's work was dismissed in the two quarter.

Under the impact of the 2008 financial crisis, Valentino's annual revenue dropped by 9%.

Until the original Maria Grazia Chiuri and Pierpaolo Piccioli were appointed to the Valentino accessories department, the shares of the Qatar Investment Fund Mayhoola For Investments, Valentino Valentino were revival under the latter's far sighted global retail expansion plan, and realized a 240% profit growth in 2013.

The Carlyle Europe Partners IV, the European division of Carlyle investment group, which acquired GGDB, has a relatively strong track record in fashion investment.

It has invested only three brands before, mainly in Italy's small and medium luxury brands, including Moncler, Italy brand TwinSet Simona Barbieri and Holland underwear brand Hunkem ller International B.V.

Among them, Moncler is the most successful case at present. The development route is the acquisition and start of the global retail expansion plan in 2008. 2013 completed the IPO and 2014 years.

Carlyle Group's other brand TwinSet Simona Barbieri is also so - in 2015, Carlyle Group increased its brand share by 90%, and hired Moschino's former CEO Alessandro Varisco as its chief executive to prepare for IPO.

In this regard, GGDB's retail expansion in the world should accelerate soon.

More interesting reports, please pay attention to the world clothing shoes and hats net.