What’s going on here?
US private equity firm Carlyle Group is moving forward with the sale of Italian fashion brand Twinset, targeting a valuation between €300-350 million.
What does this mean?
Carlyle Group has kickstarted the sale process for Twinset by soliciting non-binding offers from potential bidders, according to insiders. Rothschild has been appointed as the financial adviser to manage this high-stakes deal. The targeted valuation hints at significant investor interest, with teasers already sent out to potential buyers, possibly luring Asian investment groups. Carlyle has been the majority owner of Twinset since 2012, gradually increasing its stake to full control by 2017. A previous sale attempt in 2020 was postponed due to the pandemic, adding an element of anticipation to this renewed effort. Despite recent struggles to return to pre-COVID revenue levels, Twinset reported a core profit of €34 million on over €200 million in revenue last year.
Why should I care?
For markets: Fashioning a hefty deal.
The sale of Twinset could inject fresh dynamics into the fashion industry, attracting global investors looking to capitalize on the brand’s potential. While Twinset’s struggle to rebound from COVID-induced setbacks may be a concern, a successful sale could rejuvenate the brand and spark investor confidence in the luxury fashion sector. Anticipate a ripple effect that could influence stock movements in publicly traded fashion firms.
The bigger picture: Global investment trends in vogue.
Twinset’s sale aligns with broader trends where private equity firms leverage strategic sales to optimize their portfolios. By targeting investors possibly from Asia, Carlyle’s move reflects the global shift toward cross-border investments in luxury brands. This trend could reshape the investment landscape, encouraging a more diversified approach to tapping into high-value consumer markets across different regions.