Roberto Cavalli’s private equity designs faded on Friday as Investcorp ended talks to buy a majority stake, bolstering skepticism the eponymous fashion house could go down the same route of rival label Versace and engage international investors.
The 73-year-old Italian designer, known as “The Leopard King” for his animal prints colorfully cast in leather, silk and velvet, was hoping to receive a 450-million-euro ($612 million) offer from Investcorp by a June 30 deadline.
But the Bahrain-based private equity company, which owned Gucci in the past and was also a bidder for the 20 percent stake in Versace, turned its back on the deal, said two sources close to the negotiations.
“The company lacks appeal and there is a discrepancy between the asking price and the cost of turning around the business,” said one of the sources, who declined to be named.
Price expectations for around 60 percent of Cavalli were based on a multiple of 18 times earnings before interest, tax, depreciation and amortization (EBITDA) of 25 million euros. (Reuters)
