Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Blackstone Group LP    BX

BLACKSTONE GROUP LP

(BX)
My previous session
Most popular
  Report  
SummaryQuotesChartsNewsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Michael Kors set to snap up Italy's Versace - sources

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/24/2018 | 12:17pm EST
FILE PHOTO: Milan Fashion Week Spring 2019

LONDON (Reuters) - U.S. fashion group Michael Kors has agreed to take control of Versace in a deal that could value one of Italy's most prized designers at $2 billion (1.52 billion pounds), sources familiar with the matter said on Monday.

Budding luxury conglomerates, including Michael Kors' U.S. rival Tapestry, owner of Coach and Kate Spade, are trying to make in-roads into an industry still dominated by European players such as Louis Vuitton owner LVMH.

Michael Kors, whose namesake label is best known for its leather handbags, has made no secret of its ambition to grow its portfolio of high-end brands after buying British stiletto-heel maker Jimmy Choo for $1.2 billion last year.

Versace, known for its bold and glamorous designs and its Medusa head logo, is one of a clutch of family-owned Italian brands cited as attractive targets at a time when the luxury industry is riding high on strong demand from China.

But not all brands have benefited equally, with some struggling to refresh their image or products to capture a younger audience, and some fashion groups are looking to diversify with more labels to face such challenges.

"Bringing brands like these back to centre stage is not as easy as it looks, though," said Luca Solca, an analyst at Exane BNP Paribas. "Would Michael Kors have what it takes to succeed in this? I wonder. The plan seems ambitious."

Shares in Michael Kors fell in early U.S. trade and were down 8.7 percent by 1526 GMT.

The move is in line with the U.S. brand's ambition to aggregate various luxury brands - including fashion, shoes and accessories - under one larger group.

The deal - which is expected to be announced imminently - will give Michael Kors a mega-brand and red carpet favourite that is among the most recognisable and followed fashion labels in the world.

Two of the three sources who spoke to Reuters said the company had agreed to pay a large premium for Versace.

Michael Kors could not be reached for comment. Versace declined to comment.

Donatella Versace, sister of late founder Gianni who doubles as artistic director and vice-president of the Milan-based group, has called a staff meeting for Tuesday, according to a person who was briefed by a company employee.

The Italian fashion icon has been considering a market listing after U.S. private equity group Blackstone bought a 20 percent stake in 2014 to fund overseas expansion, although Chief Executive Jonathan Akeroyd told Reuters earlier this year there was no rush for an IPO.

After investing in Versace at a high multiple, Blackstone found its performance insufficient to justify a market listing, said one of the sources, who is close to the family.

"They gradually persuaded the family to look into a possible sale and introduced them to a series of buyers, including Michael Kors," the person added.

"Blackstone wasn't going to put any more money into it. They needed a buyer who could make heavy investments."

"OVERPRICED"

French fashion houses including Paris-based Kering were among those holding talks with the Versace family, the sources said, but considered the price too expensive.

"They didn't feel the need to invest so much money into another Italian fashion brand. It was overpriced," the source said.

Kering declined to comment.

As part of the deal, Blackstone will fully exit Versace, while the family, which owns the rest of the fashion house via a holding company called Givi, will keep a role, the sources said.

Givi in turn is half-owned by Allegra Versace Beck, daughter of Donatella and niece of late founder Gianni. Donatella herself owns 30 percent of the holding, with the remainder in the hands of her brother Santo.

Blackstone, whose stake acquisition valued Versace at $1.4 billion in 2014, declined to comment.

Versace does not disclose its financial details, but documents deposited with the Italian chamber of commerce show that last year it posted sales of 668 million euros ($786 million) and earnings before interest, tax, depreciation and appreciation (EBITDA) of 44.6 million euros.

Since Akeroyd's appointment in 2016, Versace has been working on streamlining its management structure, cutting costs and pushing to increase sales online.

Last year it returned to a net profit of just under 15 million euros compared with a net loss of 7.9 million euros the previous year.

($1 = 0.8499 euros)

(Additional reporting by Claudia Cristoferi, Giulia Segreti and Elisa Anzolin in Milan and Sarah White in Paris, writing by Agnieszka Flak; editing by Louise Heavens, Kirsten Donovan and Alexander Smith)

By Pamela Barbaglia

Stocks mentioned in the article
ChangeLast1st jan.
BLACKSTONE GROUP LP 0.89% 33.4957 Delayed Quote.11.37%
KERING 1.13% 473.5 Real-time Quote.16.62%
LVMH MOËT HENNESSY VUITTON SE 1.15% 294.2 Real-time Quote.12.65%
TAPESTRY INC 2.29% 35.945 Delayed Quote.4.15%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BLACKSTONE GROUP LP
09:20aEUROPE MARKETS: European Stocks Headed For Best Weekly Gain Since Late 2018
DJ
05:34aBLACKSTONE LP : Private equity firms win over Scout24 with improved $6.4 billion..
RE
02:07aPrivate equity firms eye bonanza in India's residential real estate space
RE
02/14BLACKSTONE LP : Form 13F Holdings Report
PU
02/12BLACKSTONE LP : Mortgage Trust Reports Fourth Quarter and Full Year 2018 Results
PR
02/12BLACKSTONE LP : to back ex-Eton Park partner with $150 million seed
RE
02/08BLACKSTONE GROUP LP : Ex-dividend day for
FA
02/07BLACKSTONE LP : to Acquire Aadhar, India's Largest Independent Affordable Housin..
AQ
02/06BLACKSTONE LP : Energy Partners Announces Its Partnership with Waterfield Midstr..
AQ
02/05BLACKSTONE : Energy Partners Announces Its Partnership with Waterfield Midstream..
BU
More news
Financials ($)
Sales 2019 6 847 M
EBIT 2019 3 944 M
Net income 2019 4 020 M
Debt 2019 -
Yield 2019 6,74%
P/E ratio 2019 -
P/E ratio 2020 9,37
Capi. / Sales 2019 5,83x
Capi. / Sales 2020 5,09x
Capitalization 39 910 M
Chart BLACKSTONE GROUP LP
Duration : Period :
Blackstone Group LP Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BLACKSTONE GROUP LP
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 14
Average target price 39,8 $
Spread / Average Target 20%
EPS Revisions
Managers
NameTitle
Stephen Allen Schwarzman Chairman & Chief Executive Officer
Jonathan D. Gray President, Chief Operating Officer & Director
Kathleen Skero Finance Director & Principal Accounting Officer
Michael S. Chae Chief Financial Officer
Jay A. Leek Chief Information Security Officer
Sector and Competitors
1st jan.Capitalization (M$)
BLACKSTONE GROUP LP11.37%39 910
T. ROWE PRICE GROUP5.44%23 425
LEGAL & GENERAL15.50%20 178
AMUNDI14.99%12 145
HARGREAVES LANSDOWN-10.30%10 075
STANDARD LIFE ABERDEEN PLC-3.19%7 971