Negotiations over Golden Goose have accelerated and a sale could be finalized as early as mid-February, according to market sources.
Two private equity funds — Permira and Advent — are said to be neck and neck in securing the deal to buy the Italian brand from the current owner, the Carlyle Europe Buyout fund.
As reported in November, sources told WWD that a “teaser dossier” had been presented to potential bidders and that seven to eight companies had shown some interest. These ranged from PVH Corp. and Permira to Advent and Ralph Lauren Corp. Tapestry Inc., parent of Coach, Kate Spade and Stuart Weitzman, was also said to have expressed an interest in Golden Goose.
Sources said Carlyle could pocket between 1.3 billion euros ($1.43 billion) and 1.5 billion euros ($1.65 billon). The highest range of the valuation would be 17 to 18 times the company’s 2019 earnings before interest, taxes, depreciation and amortization and about 15 times the expected 2020 EBITDA, one source said. Figures for 2019 have not been released yet, but 2019 revenues are expected to reach $300 million, up from $205 million in 2018. EBITDA is forecast to reach around $90 million in 2019, an increase from $51 million the previous year. According to a source, the plan is to reach sales of $510 million and EBITDA of around $160 million in 2022.
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This story was reported by WWD and originally appeared on WWD.com.
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