Qatari fund buys 65 percent of Pal Zileri

Mayhoola For Investments, a fund based in Qatar, which last year bought Valentino, has announced the

acquisition of a 65 percent stake in the Italian luxury menswear house of Pal Zileri, up to date privately owned by Gruppo Forall Confezioni S.P.A.

Mayhoola has being in talks with the Italian group since November, 2013 and faced competition from an Asian fund.

Although the price of the transaction remains undisclosed, market sources said that once the deal is sealed, the company could fetch an enterprise value of close to 100 million euros, including net debt of 45 million euros. The deal could value the brand at 15 times current year EBITDA and be signed by the end of March, an anonymous source close to the matter quoted by Reuters said earlier in January.

Gruppo Forall was founded in 1970 as a project of a group of entrepreneurs in the textile and clothing sector. Their best known brand, Pal Zileri, was born in the 80s and has a current consolidated turnover that exceeds 110 million euros.

The group manufactures and distributes high-quality men suits and accessories through their brands Pal Zileri, Pal Zileri Concept, Pal Zileri Sartoriale, Pal Zileri Cerimonia and Lab.

It also holds the licences for Moschino and Cerruti 1881.

Qatari investor Mayhoola bought Italian fashion label Valentino in 2012 at 20 times current-year EBITDA, as per data collated by Reuters.