SWITZERLAND. US private equity firm TPG Capital is to sell accessories and ready-to-wear brand Bally International to Labelux Group, a holding company formed by Germany’s billionaire Reimann family.
The deal values Bally International at between US$600 and US$700 million, or 1.4 times its 2008 sales forecast, with the buyout expected to completed this Summer.
Commenting on the deal, Labelux Chief Executive Officer Berndt Hauptkorn said: “Bally is a brand with wonderful heritage and rich archives, and now it is well-positioned for its next phase of growth.”
TPG Principal Bastian Lueken added: “We are certain that a committed strategic owner, such as Labelux Group, will be able to provide the company with the right guidance and resources for its next phase of expansion.”
Founded in 1851 by Carl Franz Bally, the Bally brand is stocked in more than 1,000 stores worldwide, with 250 outlets under its own name.
TPG acquired Bally in October 1999 for about US$200 million and restructured the loss-making organisation, investing heavily to increase the brand’s visibility in luxury markets such as travel retail.
In 2004, the brand returned to profit and has maintained double-digit growth rates since, last year recording sales of about US$500 million.
[comments]
Your post will appear – once approved – in
The Moodie Forum on our home page
MORE STORIES ON BALLY
Bally appoints new creative chief – 01/03/07
DFS and brand partners, plus Tiffany, Bally and Coach triumph in Changi luxury tender – 14/07/06
