Investcorp Bank BSC, a Bahrain investment house that made its mark in the 1980s with buyouts of high-end retailers Gucci Ltd. and Tiffany & Co., said it purchased a 55 percent interest in luxury Italian menswear maker Corneliani SpA.
It bought the stake from company co-founder Carlalberto Corneliani and other family members in a deal valuing the business at about $100 million, Hazem Ben-Gacem, who heads European corporate investing for Investcorp, said. The family retained a 45 percent interest.
Started in 1958, Corneliani makes men’s suits and casual wear that are sold in 68 countries at more than 980 stores, including Harrods, Saks Fifth Avenue and Bloomingdale’s.
Revenue was about 110 million euros ($124 million) last year, and hasn’t grown in recent years, similar to sales of many luxury-goods makers, Ben-Gacem said.
“Our plan, which is not much different from what we have done with many of the other consumer brands we have owned, is to act as the catalyst to grow the business internationally,” particularly in North America, he said.
Carlalberto Corneliani, 84, stepped down as chief executive officer on Monday, when the buyout closed. Ben-Gacem said a new CEO with be named soon.
Investcorp, which has offices in London, New York and the Middle East, manages about $11 billion in capital, chiefly on behalf of wealthy Middle Easterners.
Prior to Corneliani it had done two European buyouts in the last year, most recently purchasing POC Sweden AB, a ski-equipment maker, for about 60 million euros in December.
The firm has sold eight European holdings over the same span, Ben-Gacem said. Its latest exit, in May, was from GL Education Group Ltd., a UK educational testing and survey concern.
Source: Arab News