Carlyle wins the race over Golden Goose

The Carlyle Group (NASDAQ: CG) has acquired 100 percent of capital at Golden Goose. The final amount paid by the asset management firm has reportedly reached 400 million euros and the transaction is confirmed to be finalised by late March.

Back in 2015 the Belgian investment firm Ergon bought a majority stakein the Venice-based fashion brand for which it paid about 100 million euros.

The race to buy out the Italian brand was fierce and has expedited the outcome, point out market sources. Main contenders in this competition were Carlyle, General Atlantic and Permira“plus maybe some other financial group.”

Golden Goose is Carlyle’s fourth large investment in fashion

This is Carlyle’s fourth large investment in the European fashion and apparel sector, following previous investments in ski jacket maker Moncler, TwinSet Simona Barbieri and Hunkemoller, recalls the ‘Financial Times’.

Launched in 2000, the luxury sneakers brand generated in excess of 100 million euros in revenue in 2016, with international markets accounting for almost 60 percent of such revenues. Golden Goose Deluxe Brand is distributed worldwide through a network of more than 700 exclusive multi-brand stores and franchisees, along with eight directly operated flagship stores.

Commenting the deal, Marco De Benedetti, managing director and co-head at Carlyle Europe Partners, said: “We admire Golden Goose’s stylistic unique brand identity, effective business model and undisputed capacity to innovate and create a new category of ‘luxury fashion sneakers’. We look forward to supporting Golden Goose Deluxe Brand with our strategic industry knowledge and through investments to build the potential for the brand, especially in United States and Asia, and predominantly though an acceleration of its worldwide retail and online presence.”

Meanwhile, Emanuele Lembo, managing partner of now former owner of the brand Ergon Capital Advisors, added: “This transaction is exactly in line with Ergon’s investment philosophy and approach and we are very pleased with the successful partnership that Ergon has established with an excellent management team and its co-investors. Over the life of this investment, Ergon has supported the extraordinary development of the company accelerating its sales growth, also through the expansion of the retail network, with a constant focus on operational excellence. We trust that Golden Goose Deluxe Brand and its outstanding management team will succeed in further creating value in the future and we are convinced that The Carlyle Group is the perfect partner for the company’s next phase of growth.”

The Carlyle Group was advised by DVR Capital, Bain & Company, KPMG and Latham & Watkins. The sellers were advised by Lazard, The Boston Consulting Group, PWC and Gianni Origoni Grippo Cappelli & Partners.

Photo:Golden Goose Web