A person familiar with the matter told Reuters that the US Apparel and Footwear Association VF Corporation and the acquisition funds Permira and Advent had made an indicative offer to Italian footwear brand Golden Goose before the mid-December deadline.
Each pair of luxury sneakers produced by Golden Goose, owned by Carlyle (CG.O), a private equity fund, sells for about 400 euros ($ 440) and will be sold as part of an auction process led by Bank of America.
Sources said that the Venice-based company was founded in 2000 by designers Francesca Rinaldo and Alessandro Gallo, and has a market value of 1.4 billion euros, causing financial Interest from investors and some American fashion groups.
Sources said that the owner Carlyle Group has invited a small number of bidders to submit a non-binding offer in mid-December, which is the first step of the auction and is expected to be completed early next year.
A Carlyle spokesman declined to comment.
Carlyle is also the owner of the fashion brand Twin Set. Given the slowing consumer growth caused by the trade war between the United States and China and the turmoil in Hong Kong, Carlyle wants to secure new investors despite the gloomy outlook for luxury goods companies One source who was able to grow the business said.
Another source said that the Washington-based acquisition fund aims to accept no less than 1.2 billion euros for cheap golden goose equivalent to 15 times its core earnings of about 80 million euros.
Sources say Permira, the owner of Dr. Martens, is considered a strong contender for the asset because it is in the luxury brand space including Valentino and Hugo Boss Has a wealth of expertise.
Another source said that London-based Permira faces competition from rivals Advent and numerous industry players including apparel giant VF Corporation, which controls other brands such as North face, Eastpak, Timberland and Vans.
Another source said that two other US conglomerates, PVH Corp (PVH.N) and Tapestry (TPR.N), may also decide to participate in the bid.
PVH owns Calvin Klein and Tommy Hilfiger, while Tapestry is known as the owner of Coach and Kate Spade.
Permira declined to comment, while Advent, VF Corporation, PVH Corp and Tapestry did not immediately comment.
Carlyle acquired Golden Goose from mid-market investment company Ergon Capital in 2017 and continues to adjust its management team and opened flagship stores in New York, Tokyo and Beijing to expand its operations in the US and Asia.
Led by CEO Silvio Campara, Golden Goose has also expanded its product portfolio to include leather-based clothing and accessories.