×
362
Fashion Jobs
PNB HOUSING
Area Sales Manager
Permanent · Thane
PNB HOUSING
Area Sales Manager
Permanent · Pune
JM FINANCIAL HOME LOANS LTD
Area Sales Manager - Home Loans
Permanent · Chennai
DANIEL WELLINGTON
IT Support Specialist
Permanent · MUMBAI
ADIDAS
Senior Manager, Ecommerce Campaign Operations, Apac
Permanent · GURUGRAM
MANPOWERGROUP SERVICES INDIA
Opening || Horeca Sales Manager || Kolkata
Permanent · Kolkata
DBS BANK
Hiring For Area Sales Manager - Gold Loan
Permanent · Karaikal
DBS BANK
Hiring For Area Sales Manager - Gold Loan
Permanent · Thiruvarur
DBS BANK
Hiring For Area Sales Manager - Gold Loan
Permanent · Tirunelveli
AVANTOR
Area Sales Manager- Lab Consumables
Permanent · Pune
ADIDAS
Manager Brand Activation Originals
Permanent · GURUGRAM
ZACH LIFESTYLE PVT. LTD.
Manager - Content & Social Media
Permanent · MUMBAI
MONALISA ELECTRONIC DESIGN CENTRE PRIVATE
Excellent Job Opportunity For Area Sales Manager- gt & mt
Permanent · Shimla
RRD
Associate Production Manager
Permanent · Chennai
GOKALDAS EXPORTS
Executive - Warehouse (Apparel / Garments Background)
Permanent · Bhopal
NEW ALFA INTERNATIONAL
Foundry Production Manager
Permanent · Dubai
MEDCIS PATHLABS
Medcis Pathlabs is Hiring For Pathology Area Sales Manager
Permanent · Visakhapatnam
PERFECT PUBLISHING SOLUTIONS
Area Sale Manager-b.Tech Fresher-German Mnc -Immediate Joining
Permanent · Bhubaneswar
PERFECT PUBLISHING SOLUTIONS
Area Sale Manager-Denmark Mnc - Medical Device or Hearing Aid
Permanent · Chennai
PEOPLE ALLIANCE WORKFORCE
Area Sales Manager - Cosmetics & Personal Care - Fmcg Industry
Permanent · Bhopal
DESAI ELECTRONICS
Manager Production
Permanent · Pune
PEOPLE ALLIANCE WORKFORCE
Area Sales Manager - Ophthalmic Segment/Ent- Pharma Industry
Permanent · Bengaluru
By
Reuters
Published
Apr 5, 2013
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Italian tailor Pal Zileri up for sale

By
Reuters
Published
Apr 5, 2013

PARIS/MILAN - The family owners of Italian suitmaker Pal Zileri are looking to sell their holding and bring in external investors to boost the brand's international expansion and revive its fortunes, sources close the matter have said.

Pal Zileri, known for its classic tailored suits priced at over 2,000 euros ($2,600), competes with the likes of Canali, Corneliani, Brioni, part of PPR, Ermenegildo Zegna and Hugo Boss.

The four family shareholders who own 65 percent of the company are seeking to sell all or most of their holding, ideally to investment funds which already have fashion brands in their portfolio, a source close to the deal told Reuters.

(photo: Pal Zileri)

"The brand needs repositioning on growing markets and to reduce its debt," the first source said, adding that the company's debt stood at around 50 million euros.

Pal Zileri declined to comment on the shareholders' plans to sell. "Being an interesting company, we have been approached many times in the past by possible investors but nothing happened," a spokeswoman said in a an email on Thursday.

The search for additional investors could be complicated by the family owners' sale of an initial 35 percent stake in 2008 to one of its suppliers, the Cairo-listed Egyptian textile group Arafa Holdings which also works for retailers such as GAP, Macy's and Marks & Spencer.

At the time, the transaction valued the entire company at around 73 million euros, or 14 times earnings before interest, tax, depreciation and amortisation (EBITDA).

Arafa Holding has a five-year call option that enables it to acquire the remaining 65 percent which expires this year and has first right of refusal if other shareholders want to sell.

It is not yet clear what Arafa will do if new investors are found, the sources said. Nobody at Arafa Holding was available for comment on Thursday.

Located in Quinto Vicentino, in the northern Veneto region, Pal Zileri generates more than 60 percent of its sales in Western Europe, of which 28 percent are in crisis-hit Italy.

Pal Zileri makes and distributes men suits under licence for Borsalino, Cerruti 1881 and Moschino as well as clothing for Lanvin and Zilli among others, a business which overall makes up about 21 percent of turnover.

Manufacturing for rivals is not a profitable business and makes the company vulnerable to fluctuations in revenues when orders are cut, a second source told Reuters.

"They need capital to develop their own brand and they are in a vulnerable position because of their business working for others," the second source said.

In 2012, Pal Zileri made EBITDA of around 7 million euros on estimated sales of 150 million euros.

The second source close to the talks said the company's enterprise value could range between 60 and 100 million euros.

When Arafa entered its share capital, Pal Zileri aimed for sales of 200 million euros in four to five years.

"They (Pal Zileri's family owners) hope the Egyptians will consent to different partners from the Italians, who want to sell," the same source added.

© Thomson Reuters 2023 All rights reserved.