Roberto Cavalli could be close to a 450 million euro sale to Permira

Roberto Cavalli is said to be in discussion to sell a majority stake in his eponymous fashion company to private equity firm Permira, valued at 450 million euros (369 million pounds). Internal sources close to the matter told Reuters that the talks were in an advanced stage and that a deal may be agreed

within the next few weeks. The discussion is thought to be led by the Italian designer himself, who is in charge of management duties after a internal structure change, who according to sources seeks to retain between 20 and 40 percent of the company.

The potential sale would not be the first of its kind to come to light; six years ago Cavalli was close to selling a minority stake to private equity firm Clessidra before the agreement was dropped. Italian newspaper Il Sole 24 Ore newspaper previously claimed the talks fell through because both parties were unable to agree on the value of the company.

Deal with Permira thought to be advanced stages

However, London-based Permira's former deals in the luxury and fashion division hints that the private-equity firm is better placed to seal the deal with Roberto Cavalli. Permira previously acquired a stake in footwear company Dr. Martens last October for 300 million pounds and successfully obtained labels such as Hugo Boss and Valentino, before selling them to a group of Qatari private investors.

Société Générale, a French multinational banking and financial services company is said to be working with Permira on the deal with Cavalli, along with Uni Credit and BNP Paribas, according to sources.

Other sources claim that a number of funds have shown interest in the Italian fashion house, as interest in the Italian fashion industry continues to build. Last February, US private equity firm Blackstone, signed a deal to acquire a 20 percent stake in Italian label Gianni Versace SpA after agreeing to inject 210 million euros into the label.

The Roberto Cavalli Group has been valued at 450 million euros (369 million pounds) by financial advisors familiar with the rumors, which is based on the multiple of 15 times the Group's EBITA of 25 million euros for 2013.