Sources told Reuters that U.S. footwear and apparel maker VF Corp, private equity fund Permira and Advent are planning to target the Italian light luxury tide shoe brand Golden Goose Deluxe Brand (Chinese translation “Golden Goose”, hereinafter referred to as ” Golden Goose “) initiated an acquisition intention.
In September this year, Hualizhi reported that the US private equity giant Carlyle Group had commissioned Bank of America to bid for the sale of its brand Golden Goose.
Sources said recently that Golden Goose has attracted interest from financial investors and some American fashion groups, with a current valuation of 1.4 billion euros. The Carlyle Group has invited a small number of bidders to submit a non-binding offer in mid-December. This is the first step in the bidding process, which is expected to be completed early next year. The Carlyle Group declined to comment.
Despite the current poor prospects for the luxury market, the Sino-US trade war and the turbulent situation in Hong Kong have slowed consumer spending. But The Carlyle Group hopes that new investors will ensure cheap golden goose grows.
A source said that the Carlyle Group’s target offer for Golden Goose is no less than 1.2 billion euros, which is 15 times the latter’s core profit of about 80 million euros.
According to several sources, Permira, the European private equity fund owner of British shoe brand Dr. Martens, is seen as a strong contender for Golden Goose, and luxury brands such as Valentino and Hugo Boss have been part of Permira’s portfolio . It is worth mentioning that according to Hualizhi, Permira is planning to withdraw its investment in Dr. Martens next year, and Carlyle Group is one of the potential buyers.
Another source said Permira is also facing competition from private equity fund Advent and some industry groups, including US shoe and apparel maker VF Corp. VF Corp owns outdoor sports brands such as The North face, Eastpak, Timberland and Vans.
Another source speculated that two other U.S. companies, the US fashion retail group PVH Corp and the US light luxury group Tapestry, might also join the bidding group, but stressed that the accuracy of the news could not be determined. PVH Corp owns brands such as Calvin Klein and Tommy Hilfiger, while Tapestry is the owner of Coach and Kate Spade.
Permira declined to comment, and none of Advent, VF Corp, PVH Crop, and Tapestry immediately commented.
Golden Goose is based in Venice and was founded in 2000 by designers Francesca Rinaldo and Alessandro Gallo. The brand features distressed high-end trendy shoes as its main feature. Its main sports shoes made of high-quality leather are mostly decorated with the brand’s iconic five-pointed stars. They are sought after by global trendsetters. Its products include ready-to-wear, footwear and accessories.
Golden Goose has flagship stores in multiple cities around the world, including Venice, New York, Paris, London, Milan, Tokyo, Seoul, Beijing, Beirut, Saint-Tropez, Amsterdam and more. According to “Gorgeous” previously reported, there is news that Frida Giannini, former creative director of Gucci, has joined Golden Goose. It is reported that she plays an important role in the brand’s design department, strictly speaking, she is responsible for the design of some of her product lines as the designer behind the scenes.
Over the past few years, Golden Goose’s controlling stake has changed hands several times. In 2013, the Italian private equity fund DGPA SGR acquired 75% of the brand’s equity for 45 million euros, and the remaining 25% of the shares were continued to be held by GGDB co-founders Alessandro Gallo and Francesca Rinaldo; in 2015, the Cyprus investment company Ergon Capital Partners III from SGR acquired 75% of the brand’s equity; in 2017, Carlyle acquired the entire equity of the brand with a transaction valuation of up to 400 million euros.