luxury goods

Marquee Brands, a portfolio company of Neuberger Berman Private Equity, a business unit of investment manager Neuberger Berman, has signed an agreement to acquire the Bruno Magli brand and related intellectual property assets from Bruno Magli SpA.  The transaction is expected to close sometime in the first quarter of 2015.

This is the first acquisition for Marquee Brands which was formed as a brand acquisition, licensing and development company by Neuberger Berman Private Equity in September 2014. Marquee Brands is headquartered in New York and is led by Michael DeVirgilio, President and Cory Baker, Chief Operating Officer (www.marqueebrands.com).

“Rarely do brands with the stature of Bruno Magli become available with an untapped opportunity to market, expand and grow into a lifestyle brand. We have a thorough brand strategy already created that will allow it to naturally develop into new categories,” said Mr. Baker.  “Bruno Magli is the epitome of luxury and we are excited for this to be our first jewel in the crown of a growing portfolio.”

Founded in 1936, Bruno Magli is among the original Italian luxury brands. The brand has produced fashion footwear for a global consumer base including celebrities and royals throughout its nearly eighty years.  Bruno Magli’s corporate office will be based out of the New York headquarters of Marquee Brands.  Keeping in line with Marquee’s investment thesis, the design and manufacturing of Bruno Magli’s core footwear and leather products will continue in Italy (www.brunomagli.com).

“Marquee Brands was created to acquire and grow high quality brands through product and geographic expansion. Bruno Magli is one of the most revered Italian legacy brands. We have already begun to secure partnerships in new categories with true best-in-class partners for growth at better retailers across the globe,” said Mr. DeVirgilio.

Marquee Brands continues to seek acquisition of other high-quality brands.  “Similar to Bruno Magli, we will seek to acquire brands which we can grow through our global footprint across 17 countries, relationships with best-in class partners and the management expertise of Michael and Cory. We look forward to building long-term value for Bruno Magli and other leading brands as we move forward,” said Zachary Sigel, Principal of Neuberger Berman and Director of Marquee Brands, who is responsible for brand acquisitions for the Company.

Legal services for Marquee Brands was provided by the Milan office of Cleary Gottlieb (www.cgsh.com) and financial and consulting services were provided by the Bologna office of Studio Gnudi (www.studiognudi.it).

Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages equities, fixed income, private equity and hedge fund portfolios for institutions and advisors worldwide. Neuberger Berman managed $247 billion in client assets as of September 30, 2014. The firm has offices in 17 countries and is headquartered in New York (www.nb.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-13-15

Blackstone has agreed to invest €210 million ($287 million) for a 20% equity interest in luxury products company Gianni Versace SpA (DBA Versace). The transaction values the equity of the company at just over €1 billion ($1.4 billion).

Blackstone will invest €150 million of equity capital into Versace in return for a 14.3 percent equity interest and will invest €60 million in GIVI Holding, the Versace family holding company, in return for a 5.7 percent equity interest.

Versace is one of the world’s leading international fashion houses. Versace designs, markets, and distributes luxury clothing, accessories, makeup, and home furnishings under the various brands of the Versace Group. The company employs approximately 500 and had annual revenues of approximately €480 million in 2013. Versace was founded in 1978 by Gianni Versace who died in 1997. The company is currently owned 30% by Santo Versace (Gianni Versace’s brother), 20% by Donatella Versace (sister) and 50% by Allegra Versace (Donatella Versace’s daughter). Versace is headquartered in Milan, Italy (www.versace.com).

“This investment in the company, together with our clear direction and our outstanding management team, will enable us to achieve Versace’s potential,” said Donatella Versace in a released statement.

Blackstone is one of the world’s leading investment and advisory firms. The firm’s alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-focused funds and closed-end funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Blackstone is headquartered in New York (www.blackstone.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-27-14

Investcorp has signed an agreement to acquire Scandinavia’s luxury retailer Georg Jensen for $140 million from private equity group Axcel Capital Partners. Georg Jensen is part of the Royal Scandinavia Group which was bought by Axcel in 2001.

As part of this transaction, Investcorp has teamed up with David Chu, a luxury brand entrepreneur and founder of Nautica, who will join the company on closing as Chief Creative Director and Co-Chairman of the Board. Also joining the Board on closing will be Guy Leymarie, former Chief Executive Officer of DeBeers Diamond Jewelers, Cartier International and Dunhill.

Georg Jensen is a global luxury brand that designs, manufactures and distributes jewelry, watches, fine silverware and high-end homeware. The business has 94 fully owned stores and three franchised stores across the world. Georg Jensen has approximately 1,200 employees worldwide and in 2011 had sales of approximately $160 million. The company was founded in 1904 and is based in Denmark (www.georgjensen.com).

“We are delighted to be working with Investcorp, which has an unrivalled experience of building luxury brands. Investcorp’s commitment to developing the brand will ensure we are able to further strengthen Georg Jensen’s position globally as the leading Scandinavian luxury lifestyle brand,” said Ulrik Garde Due, CEO of Georg Jensen.

Investcorp invests in mid-size companies operating in a wide array of industry sectors that have total enterprise values of between $200 million and $1 billion and are located in North America or Western Europe. The group has offices in London and New York (www.investcorp.com).

“Over the course of three decades, Investcorp has invested in several luxury brands. Based on this experience and with the support of luxury brand veteran, David Chu, we will work closely with Georg Jensen’s management team to help promote the Georg Jensen brand globally,” said Mohammad Sammakia, Managing Director at Investcorp.

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-5-12