LONDON / Milan (Reuters)-People familiar with the matter told Reuters that VF Corporation and the acquisition funds Permira and Advent of the American Apparel and Footwear Association are in the process of indicating the Italian footwear brand Golden Goose by the mid-December deadline. Quote.
Each pair of luxury sneakers produced by Golden Goose owned by the private equity fund Carlyle (CG.O) will sell for about 400 Euros ($ 440) and will be conducted as part of an auction process led by Bank of America sell.
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 Attention of 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 slowdown in 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 said that Permira, the owner of Dr. Martens, was seen as a strong contender for the asset because its expertise in luxury brands including Valentino and Hugo Boss used to be part of its portfolio.
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.