Florence Group (Permira-VAM-FII sgr) buys the entire share capital of Star New Generation from Star Capital sgr. Ok from the Antitrust

90 per shot Florence Groupan integrated platform made up of laboratories and companies that develop and manufacture high fashion clothing, footwear and leather goods for the most important international luxury brands, controlled since last year by Permira, That will acquire the entire share capital Of Star New Generation spa (SNG), a holding company for a group of companies and laboratories that design and create prototypes, as well as producing clothing on behalf of some fashion brands in the international luxury segment. SNG’s capital is 70% owned by Star Capital sgracross the bottom Star IV – Private Equity Fund, and 30% from Marzioni family. You can read it in the last one Bulletin of the Competition and Market Authority, which he decided to do not start any investigations regarding the agreement, why does not hinder to a significant extent effective competition and does not lead to the creation or strengthening of a dominant position in the relevant market, neither in the broader luxury goods market nor in the segment of third-party production and sale (B2B) of luxury brand clothing.

Again in the AGCM Bulletin we read that the operation “is aimed, on the one hand, at strengthen the development and manufacturing platform of luxury products of the Florence Group, in order to offer its customers, companies active in luxury items, more innovative solutions, personalized and high quality services, and on the other hand, for example expand the offer and level of services of SNG while maintaining the identity and tradition of the controlled companies and artisan workshops unchanged”.

As part of the agreement, it is further stated, a non-compete agreement and a non-solicitation agreement that the AGCM considered necessary Why functional to safeguarding value of SNG, “provided they are limited to the duration of two years”, thus reducing the commitment made by the sellers in the sales contract by one year. According to what was reported in the AGCM Bulletin, in fact, the sellers (therefore Star Capital sgr and the Marzioni family) have undertaken for three years not to carry out activities (B2B) in competition with the purchasing group (i.e. Florence) in the countries of EU and non-EU, compared to over 300 luxury brands and the parties’ current customers; not to acquire shares in companies that carry out the activities of the target and the Florence Group; to refrain from soliciting executives, employees or minority shareholders of SNG (and its subsidiaries) to terminate, suspend or discontinue its relationship with such companies; and to refrain from hiring these people.

We remind you that the SNG group was born in October 2018 when Star Capital’s IV fund, in its first investment, bought 70% of International Promo Studio (IPS) srl and of Moda Italia srla leading group in Italy in the production of denim, from Marzioni family and from Santini family (see another article by BeBeez). The Marzioni family had maintained a 30% share of the capital in both companies and an operational role in the company, while the Santini family had exited the capital. Since then the buy and build strategy has continued, integrating companies of excellence specialized in the Made in Italy design and production of clothing serving the main luxury fashion houses, expanding the range of product categories served.

The latest operation, announced last November, concerns the acquisition of 80% of Embroidery NBM srla company specialized in the design and production of embroidery for the main luxury brands, which until then was headed by the partners Giorgio Borelli, Nadia Nardi And Mauro Marzi, with the latter retaining the remaining 20% ​​while remaining with the company as president and CEO. The operation resulted in the group comprising a total of eight businesses with one turnover close to 140 million it’s a EBITDA of around 30 million (see another article by BeBeez).

The growth process through acquisitions is in some ways similar to that implemented by Gruppo Florence, which began its activity in October 2020 (see another article by BeBeez), when VAM Investments And Italian Investment Fund (FII) sgrwith the participation of Italmobiliarehad purchased the Tuscan clothing companies Giuntini, Ciemmeci Fashion And Mely’s Knitwear, at the same time launching the Italian hub for luxury clothing. We started with a combined turnover of around 100 million euros, reaching a more than fivefold increase by the end of 2022, numbers thanks to which the transfer of control under Permira, announced in May 2023, took place at a valuation close to one billion euros (see another article by BeBeez). “Florence Group recorded a turnover (pro-forma, including the latest acquisitions, ed.) of over 600 million euros with an ebitda of 125 million and for this year, only with organic growth, it will reach 700 million“, said the CEO of VAM Investments Marco PIanaspeaking at the round table on private equity at the 10th anniversary event of BeBeez on May 12, 2023 (see another article by here BeBeez and here is the video of the round table, from min 58). Numbers reiterated by Attila KissCEO of Gruppo Florence in an interview with BeBeez Magazine n. 9 of 24 June 2023. In the following months of 2023, then, the group continued its shopping: the last operation dates back to November, with the acquisition of Trend srla leather goods company from Scandicci, and Red Pixela graphics company (see another article by BeBeez). Thus two production centers of clothing and accessories serving the main luxury fashion houses are united, creating aa group with over 840 million euros in pro-forma revenues at the end of 2023.

At the time of the acquisition the Florence group was 60% controlled (through Florence InvestCo srl) from the Italian Investment Fund sgracross the Italian Consolidation and Growth Fund (FICC), from VAM Investments and from Italmobiliareand for the remaining 40% from founding families of the acquired companies.

Permira then completed the operation last October, acquiring control of Florence InvestCo. On that occasion Italmobiliare exited the capital of Florence InvestCo, with a large capital gain (see another article by BeBeez and here is Florence’s press release) and the Italian Investment Fund remained with a minority share, while the entrepreneurs, the management team chaired by Francesco Trapani and led by Attila Kiss and VAM Investments have decided to reinvest a significant portion. With them also several Italian industrial families: i Rovati through Fidimi Doris through Finprogi Branch through Branca International), i Gavio through AureliaTrapani via Argenta Holdings, Luca Poggi through Fariniundici, Gabriele Ritossa (Sapphire Group) through Sarafin, Paolo Barletta through Alchemy, Speranza Carletti through Fincarl And Andrea Cavagnis (former owner of Pavan) through Idea Fifty. Subsequently, the family also entered the capital of VAM 32 srl, the club deal vehicle organized by VAM Investments for the investment in Florence. Peugeot, through Peugeot Invest AssetsAnd H14the holding company of Luigi Berlusconi and sisters Barbara and Eleanor (see another article by BeBeez).