Golden Goose to change hands: private equity fund Permira to acquire Italian brand

Permira continues to expand its fashion portfolio. The investment fund, that also owns of Dr Martins, has agreed to buy Golden Goose for 1.28 billion euros (1.4 billion dollars), according to WWD. The company has overtaken Advent, which was also interested in the brand and with whom it had been competing for a year in the negotiations. The objective is for the sale to close this mid-February

Until now, Golden Goose was controlled by the Carlyle Europe Buyout fund. The deal suggests that Permira paid fourteen times the company’s expected 2019 earnings before interest, taxes and depreciation (ebita). The company has not yet presented its results for the year 2019, but expects its revenue to reach 300 million dollars, compared to 205 million dollars. 2018 dollars. Ebitda will stand at $90 million, compared to $51 million of last year. The group’s plan in the short term is to reach sales of 510 million dollars and an ebitda of 160 million dollars in 2022.

The deal suggests that Permira paid fourteen times the company’s expected 2019 earnings before interest, taxes and depreciation (ebita)

The company which specializes in sneakers, which cover 80% of its revenue, although in recent year it has diversified with accessories and clothing collections. The company operates with 58 stores and is present in 900 multi-brand outlets, which generate 60% of the sales. Meanwhile, the online channel still retains lower shares but is expected to reach between 10% to 15% of revenue in two or three years.

The company, founded by Alessandro Gallo and Francesca Rinaldo, went to Ergon in 2015. Two years later, Carlyle took over the control of the company which has doubled its revenue since then.

For Permira, the operation is to rekindle its commitment to the fashion business, a sector which has been especially active. Until 2017, Permira was the shareholder of Cortefield, controlled by Valentino between 2007 and 2012 and currently controls Dr Martens, although it has already initiated negotiations for its sale.