DESIGUAL acquired by MANAGEMENT & PRIVATE INVESTORS
Context
The deal involves the sale of Eurazeo's 10% stake in Desigual to Thomas Meyer, the company's founder and controlling shareholder. This transaction is the result of a strategic decision by Eurazeo to exit its investment in Desigual, which was made in 2014. During its four-year investment period, Eurazeo actively supported Desigual's transformation, including the development of a new brand image, the expansion of its digital distribution channel, and the optimization of its retail network. The transaction marks the final conclusion of Eurazeo’s investment cycle in the asset. While the exit multiple of 0.5x capital invested reflects the headwinds faced by the retail brand during its transformation phase, the divestment allows Eurazeo to fully reallocate its capital and strategic focus toward higher-yielding investment verticals
It is worth noting that the fund Eurazeo took control of Desigual through an LBO in 2014.
DESIGUAL, which reported an EBITDA margin of in 2017, is valued in this transaction at an EV/EBITDA multiple of , a level to compare with the average currently observed in the Retail & Consumer sector (11.2x).
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Target
Desigual is a global clothing brand that was founded in 1984 in Ibiza, Spain. The company is known for its vibrant and eclectic clothing, shoes, and accessories, which are inspired by the 'flower power' movement. Desigual has experienced significant growth over the years, with a compound annual growth rate of 29% between 2009 and 2013. The company has been able to weather the economic downturn by expanding its international presence, with over 80% of its sales coming from exports. Desigual has a strong retail presence, with numerous boutiques in major cities around the world, including New York, Paris, and Tokyo. The company's business model is focused on creating unique and eye-catching products that appeal to a wide range of consumers. Desigual's products are sold through a combination of wholesale and retail channels, including its own boutiques, department stores, and online platforms. The company's revenue growth has been driven by its ability to expand its product lines and enter new markets, while maintaining its strong brand identity and customer loyalty.
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Historical Financials (EUR)
Other operations with DESIGUAL
| Date | Acquirer | Target | Country | Sector |
|---|---|---|---|---|
| 03/2014 | EURAZEO | DESIGUAL | SPAIN | Fashion & Apparel |
REFERENCES
Revenue range: 450M - 900M EUR
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Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.
Target: desigual