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Golden Goose invites bids for mid-December: Reuters
Posted on Friday, 29 November 2019 10:06
The Carlyle Group is sounding out potential suitors for Italian footwear brand Golden Goose, in a deal that could be worth more than EUR 1.20 billion and that has attracted interest from private equity firms and strategic players, according to Reuters.

Citing people with knowledge of the matter, the news provider observed that Permira and Advent are both expected to table non-binding offers in the first round of bidding expected in mid-December.

Bank of America is said to be running the auction process, which has also reportedly attracted strategic players such as VF Corporation, the owner of North Face and Vans, Calvin Klein’s and Tommy Hilfiger’s controller PVH and Tapestry, which is known for managing Coach and Kate Spade.

Carlyle has invited a small number of bidders to submit offers by the end of 2019, the insiders noted, adding the private equity firm is looking to complete its exit in 2020.

The buyout group is hoping to fetch 15.0x Golden Goose’s core earnings of EUR 80.00 million, a second source told Reuters.

Carlyle acquired the sneaker manufacturer for EUR 400.00 million in 2017.

Founded in 2000, Golden Goose is best known for making luxury trainers valued at around EUR 400.00 per pair, as well as other types of apparel.

Several people in the know, who asked not to be named as the situation is still private, believe Permira is a strong contender given its existing presence in the luxury apparel market, having previously managed brands including Dr Martins, Valentino and Hugo Boss.

Carlyle wants to make sure it is selling to an investor that can grow the business despite the ongoing concerns of trading between the US and China, Reuters observed.

There have been 99 deals targeting footwear manufacturers announced worldwide since the start of 2019, according to Zephyr, the M&A database published by Bureau van Dijk.

In the largest of these, Kering issued convertible bonds in German sportswear group Puma worth EUR 500.00 million.

Alpargatas, a Brazilian sandals, boots and flip flop maker, US-based E-Land Footwear USA Holdings and Cayman Islands-incorporated ANTA Sports Products, among others, were also targeted in 2019 to date.

© Zephus Ltd