PE giant Carlyle raises fashion harvester

The Carlyle Group has a long-standing commitment to the tide brand. Two years ago, the Carlyle Group first wholly-owned the Italian tide brand “Little Dirty Shoes”, Golden Goose, and subsequently won 50% of the US popular street tide brand Supreme for 50 million US dollars. “Buy buy buy” to the end.

PE giant Carlyle Group once again started to deal with the tide brand.

On November 27, according to Bloomberg News, the Italian light luxury brand Golden Goose parent company, private equity group Carlyle Group is considering the acquisition of British footwear brand Dr Martens, the valuation may exceed 1 billion pounds.

The Carlyle Group has a long-standing commitment to the tide brand. Two years ago, the Carlyle Group first wholly-owned the Italian tide brand “Little Dirty Shoes”, Golden Goose, and subsequently won 50% of the US popular street tide brand Supreme for 50 million US dollars. “Buy buy buy” to the end.

However, according to people familiar with the matter, Dr Martens’s project is still in its early stages. The Carlyle Group has not yet submitted a specific offer, and there may be other potential bidders, which means that the Carlyle Group has not made a final decision.

Fashionable Harvester
4 times return after investing $ 400 million in two years

Although the boots have not yet landed, according to informed sources, the Carlyle Group has been keeping a close eye on Dr Martens.

As a global asset management company, as of the end of March 2018, the Carlyle Group’s asset management scale has reached US $ 2010 billion, with 324 investment funds, and its investment footprint spans the globe, with different expertise in various industries As for the investment in the field of clothing, it has actually begun as early as 2008.

In 2008, the Carlyle Group acquired 48% of the Italian luxury brand Moncler and became its largest shareholder. Since then, it has been unavailable. From the Italian high-end fashion brand Twin Set to the old Dutch underwear brand Hunkemöller, the Carlyle Group has harvested all the way. With European and American luxury fashion brands, they have also succeeded in capturing young people’s wallets.

In the past two years, the tide brand has swept across the fashion industry, and Carlyle’s gaze has also turned to this billion-dollar market. In 2017, the global sales of the tide brand officially exceeded US $ 200 billion. In the same year, Carlyle successively won the Golden Goose and the Supreme tide brand, and began to attack the tide brand.

Golden Goose is a successful example of rapid development under Carlyle’s polishing. Since returning to His Majesty Carlyle in 2017, Golden Goose has developed very rapidly, opening 50 stores in succession, with approximately 900 dealerships worldwide, and the brand ’s performance has continued to double. With the “red dirty shoes” as its core, its The operating income has increased from US $ 100 million in 2016 to US $ 205 million in 2018, to US $ 300 million in estimated revenue this year. According to industry estimates, the valuation of Golden Goose is currently available. Amounted to $ 1.4-1.5 billion.

At the time, Carlyle fully acquired Golden Goose for about $ 400 million, and the return was nearly four times two years later. In September this year, a source said that the Carlyle Group plans to sell Golden Goose to make full use of its current valuation. At this time, Dr Martens, which is also a footwear brand, can just replace Golden Goose and become the Carlyle fashion investment board. Important addition.

Why do PE giants want to buy it?

Dr Martens is not exactly a tide brand in the strict sense. Compared with the current young and personal tide brand, Dr Martens has a history of development for half a century.

Founded in the 1960s, Dr Martens is a well-deserved and time-honored fashion brand, but in terms of time, it seems that it can’t be linked to the current trendy brand. In fact, in addition to being young, Dr Martens almost has both.

The biggest characteristics of the tide brand are youthfulness, design sense, publicity style, and designer’s unique thinking and life attitude. Since its inception, Dr Martens has adopted a counterculture as its brand positioning. The Martin boots he created are rough and full of punk style, but they are surprisingly comfortable and healthy. They were punk, bald, and new wave. Favorite, now is an indispensable fashion item for young people. Looking at the big stars at home and abroad, almost a pair of Martin boots, although its history has more than 50 years, but the sense of fashion and trend is not diminished then.

European private equity fund Permira bought Dr. Martens for 300 million pounds five years ago, and when it sought a new buyer five years later, the valuation was already worth 1.2 billion pounds. In this regard, Dr. Martens is somewhat similar to Golden Goose. With the support of capital, it is also expanding wildly and is also loved by consumers. It has a high return on investment.

This is in line with the appetite of the Carlyle Group. The Carlyle Group has stated that Dr. Martens is obviously a good choice for investing in a brand that is large and has the potential to become larger. After 5 years of development under Permira, Dr. Martens has developed into a larger fashion brand. Last year alone, its operating income exceeded 450 million pounds, and it has successfully become one of the most popular fashion brands in the UK. The surge in performance and valuation during these five years is the best reflection of Dr. Martens’ development potential.

Judging from the current situation, Carlyle intends to sell the trendy brand “small dirty shoes”cheap golden goose to seek new challenges, and Permira just decided to find a new way for Dr. Martens when the return on investment is the most cost-effective. The encounter between Carlyle and Dr. Martens seemed to be “destined”, occupying the right place and time, and now waiting for “people and peace”.