Permira Is Buying Golden Goose for $1.4 Billion

Permira made it to the finish line. The private equity fund has succeeded in buying Golden Goose for a price pegged at $1.4 billion.

As reported last month, negotiations over the Italian brand had accelerated and a sale could have been finalized as early as mid-February. Two private equity funds — Permira and Advent — were said to be neck and neck in securing the deal to buy the Italian brand from the owner, the Carlyle Europe Buyout fund.

As reported in November, a “teaser dossier” had been presented to potential bidders and seven to eight companies had shown some interest. These ranged from PVH Corp. and Permira to Advent and Ralph Lauren Corp. Tapestry Inc., parent of Coach, Kate Spade and Stuart Weitzman, was also said to have expressed an interest in Golden Goose.

The deal implies Permira paid more than 14 times the company’s expected 2019 earnings before interest, taxes and depreciation.

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Figures for 2019 have not been released yet, but revenues last year are expected to reach $300 million, up from $205 million in 2018. EBITDA is forecast to reach around $90 million in 2019, an increase from $51 million the previous year. According to a source, the plan is to reach sales of $510 million and EBITDA of about $160 million in 2022.

Sneakers are the brand’s core business and account for around 80% of sales, but Golden Goose has been expanding its accessories and ready-to-wear. The women’s division accounts for 70% of sales. The company has also been boosting its proprietary online channel, which is expected to account for 10% to 15% of sales in two or three years, and building a network of stores. Since March 2017, the company has opened 50 stores, reaching a total of 58 last year, and the brand is available at around 900 wholesale accounts. Wholesale represents 60% of total revenue.

The brand is helmed by CEO Silvio Campara and the role of chairman is held by Patrizio di Marco. The collections are designed by an in-house team, but, as reported, former Gucci creative director Frida Giannini is said to have joined Golden Goose to work on the brand’s accessories and apparel. This is an encore for Giannini and her husband di Marco because the couple worked together at Gucci, when the executive was that brand’s chairman and CEO before Marco Bizzarri.

Carlyle acquired the Marghera, Italy-based company in 2017 from Ergon Capital Partners and Zignago Holding SpA, controlled by the Marzotto family, as well as the company’s founders and management team.

Ergon acquired a majority stake in Golden Goose in 2015. Style Capital held a minority stake in the Italian brand, which was founded by creative directors Alessandro Gallo and Francesca Rinaldo.

Since Carlyle acquired Golden Goose in 2017, revenues almost doubled, from 100 million euros ($108.8 million) in the 2016 fiscal year. When it was acquired, Golden Goose was valued at 420 million euros, with EBITDA of 32 million euros.

Golden Goose achieved much of its success with the Superstar sneaker, which offered 400 variations in one year. The brand prides itself on keeping its products handmade in Italy and offers customization through the Lab project.

This story was reported by WWD and originally appeared on WWD.com.

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