After months of rumors, it’s now official: the Florence group enters the orbit of Permira. The fever of subcontractors, which is characterizing the Italian industrial panorama with continuous business combinations, therefore does not stop and also attracts the interest of private equity funds. Among the players in the foreground is the Florence Group, the integrated Italian luxury production hub that has now aggregated 26 companies, which three years after its foundation has found a buyer.
Permira’s entry confirms this forecasts who saw the dossier of the Italian player courted by the funds. Indeed, Permira will acquire the majority stake in the company from the current shareholders: Vam Investments, Italian Investment Fund, Italmobiliare they entrepreneurs of the companies that are part of the Florence Group.
Following the operation, the note reads, gThe entrepreneurs, the management team and Vam Investments “will reinvest a significant stake in Gruppo Florence confirming their commitment to the project”, while Fondo Italiano d’Investimento will maintain a minority stake. Attila Kiss will continue to lead the group as Chief Executive Officer e Francis Trapani will keep the post of president. Financial terms of the deal, which will be finalized in the fourth quarter of 2023, have not been disclosed so far. According to Bebeez, “just look at the group’s numbers to realize the fact that the enterprise value is at least one billion euro, considering an 8 times multiple of EBITDA”.
“Our industrial project – comments the CEO Kiss – involves major investments in training, innovative digital tools and the search for sustainable production processes, entrusted to a management qualified in the design and implementation of these processes. To realize 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 business plan. I also wish to express my gratitude to Italmobiliare for the contribution given to the realization of the project, to Vam and to Fondo Italiano d’Investimento who renew their commitment alongside Permira”.
With a turnover of over 600 million euros in 2022, the Florence Group plays a leading role in the scenario of subcontractors in the fashion universe, positioning itself as one of the main manufacturing hubs which embraces the entire chain of the luxury industry, offering services that range from product development to the production of high-end clothing and accessories, shoes and leather goods for high-end brands. The goal remains that of its foundation, which is to consolidate the production chain in the luxury segment through aggregation in order to create an integrated platform.
“We are thrilled to support Attila Kiss, Francesco Trapani and the whole team of entrepreneurs, managers and investors and to make our experience available to support the company in the next phase of growth – he commented Francesco Pascalizi, partner of Permira -. We strongly believe in the industrial vision of the Florence Group and in the strategic role that Made in Italy plays within the luxury supply chain”.
Trapani, president of the group and chairman of Vam Investments echoes him: “The strong interest gathered by many entrepreneurs who have spontaneously asked to join Gruppo Florence clearly demonstrates how the intuition of favoring the consolidation process of the made in Italy luxury supply chain has been a winning choice. We are ready to collaborate with the new partner Permira for the second phase of growth of the Florence Group”.