Permira, a globally active private equity firm, will acquire – through its funds – the majority stake in the Florence Group, the main Italian industrial platform serving the high-end luxury industry. But for the current shareholders it will not be a complete disengagement. The entrepreneurs, the management team and VAM Investments will in fact reinvest a significant stake in the project, while the Fondo Italiano d’Investimento will maintain a minority stake. Furthermore, Attila Kiss will continue to lead the Florence Group as CEO and Francesco Trapani will maintain the position of President. Financial terms of the deal were not disclosed.
Gruppo Florence is today the main manufacturing hub in Italy offering services ranging from product development to the production of high-end clothing and accessories, shoes and leather products for luxury brands. Florence Group recorded a turnover in 2022 of more than 600 million euros. Founded in 2020, it was born with the aim of consolidating the fragmented production chain in the luxury sector through the aggregation of the main Italian players, in order to create an integrated platform. Today, it is made up of 26 companies that offer differentiated capabilities across a broad range of product categories. Its unique business model is based on a true partnership between the company’s investors and the entrepreneurs of the operating companies, all of whom have reinvested in the project as minority shareholders.
With the support of the Permira funds, which boast a consolidated track record in the luxury sector, Gruppo Florence will have the resources and operational skills to continue to grow and consolidate its leadership role both on the product side and on the offer of services.
“Our industrial project involves major investments in training, innovative digital tools and research into sustainable production processes, entrusted to a management qualified in the design and implementation of these processes – commented the CEO Kiss -. To achieve our ambitions, it is necessary to bring together a significant number of companies, particularly by leveraging their manufacturing tradition and expertise. I thank Permira for supporting our project and giving us the opportunity to continue with the implementation of our industrial plan”. Completion of the transaction, subject to customary regulatory clearances, is expected in the fourth quarter of 2023.