Eurazeo negotiating for controlling interest of Isabel Marant
today Dec 21, 2015
Citing sources close to the matter, Reuters has stated that French fashion label Isabel Marant has started negotiations with Eurazeo with a view to selling a majority share.
The sources specified that discussions between the two companies are still at the preliminary stage.
The Isabel Marant brand was founded in 1994 and is currently still owned by its founder and her associates. According to a source, its annual revenue is estimated in the region of €200 million.
From one of the sources, we learned that negotiations started a few weeks ago, but a deal is not imminent.
Eurazeo is currently performing due diligence, analysing the brand's balance books and strategy, so that weeks or even months could pass before a deal is agreed on and negotiations end, the source added. Isabel Marant and Eurazeo both refused to issue any comment on the matter.
With a reputation for being a modern, urban brand, Isabel Marant enjoyed a significant expansion in 2013, after designing a collection for fashion retailer H&M. Isabel Marant operates 19 stores worldwide and generates the majority of its sales through large-scale distribution retailers.
One of the sources informed us that the brand is ready to increase its capital to strengthen its position and widen its product range, especially in leather products.
In the last few years, Eurazeo undertook several investments in the luxury goods and fashion industry. In September, the investment company notably put €20 million into Vestiaire Collective, a website specialising in the sale of pre-owned fashion and luxury goods.
Last year Eurazeo also acquired a 10% interest in Spanish ready-to-wear apparel group Desigual. The company also generated substantial profits after investing in the manufacturer of the famous Moncler down jackets, which was listed two years ago on the Milan Stock Exchange.
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