mynth
03/2014

EURAZEO

invests in

DESIGUAL

SPAIN Consumer Products / Fashion & Apparel EV 1b - 4b EUR

Context

The deal involves Eurazeo's acquisition of a 10% stake in Desigual, a global clothing brand, for a total investment of €285 million. The investment is part of Eurazeo's strategy to expand its portfolio of consumer goods companies and to support the growth of Desigual's international business. The deal provides Desigual with the capital and strategic support it needs to continue its expansion plans, while also giving Eurazeo a foothold in the fashion industry. The investment is expected to help Desigual accelerate its growth plans, particularly in Europe and Asia, where the company sees significant opportunities for expansion. The deal is also seen as a vote of confidence in Desigual's management team and its ability to execute its growth strategy.

DESIGUAL, which reported an EBITDA margin of LOGIN in 2013, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a level LOGIN the average currently observed in the Retail & Consumer sector (11.3x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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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.

Ent. Value

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Equity Value

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Multiples

EV / Revenue

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EV / EBITDA

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EV / EBIT

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Historical Financials (EUR)

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2013
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2012
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Other operations with DESIGUAL

DateAcquirerTargetCountrySectorDeal Context
DESIGUALSPAINConsumer Products

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

REFERENCES

Valuation range: EV 1b - 4b EUR

Revenue range: 450M - 900M EUR

EBITDA range: 150M - 250M EUR

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of DESIGUAL by EURAZEO are reserved for mynth community members. Register for free to unlock full data.

Authors: mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Target: desigual

Acquirer: eurazeo