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Elisabetta Franchi to be listed via reverse takeover
Posted on Friday, 13 September 2019 09:36
Italian fashion house Elisabetta Franchi is heading towards the Milan stock exchange through a reverse takeover by shell company Spactiv that values the label at EUR 195.00 million. The acquiror will initially pay a maximum of EUR 77.50 million for the Betty Blue owner which will later lead to a merger, with the final business taking the clothing group’s name following closing. Founded in 1998 by designer Elisabetta Franchi, the company has 84 single-brand shops and a presence in around 1,100 department stores located around the world. At 31st December 2018, the business recorded earnings before interest, taxes, depreciation and amortisation of EUR 22.30 million on turnover of EUR 115.60 million, which has increased at an average annual growth rate of 7.5 per cent and 6.5 per cent, respectively, since 2016. Shareholders in Elisabetta Franchi are expected to hold between 58.3 per cent and 65.1 per cent of the combined firm. Closing is expected in the first quarter of 2020. Local media reports back in 2017 suggested Betty Blue was considering an initial public offering (IPO) on an Italian stock exchange in two or three years’ time. According to Zephyr, the M&A database published by Bureau van Dijk, there have been 16 stock market flotations of apparel manufacturers announced worldwide in 2019 to date. In the largest of these denim and jeans giant Levi Strauss & Company raised USD 623.33 million when it began trading on the New York Stock Exchange in March. The Second-, third- and fourth-biggest deals featured three China-based clothing groups that announced plans to go public, these included Xin Hee, Jiangsu Hanvo Safety Product and Vent dEst Garments. Italy-headquartered Pattern, India’s Jinaam’s Dress and Indonesia’s Golden Flower, among others, have also signed off or completed IPOs in the year so far. © Zephus Ltd