Canali seeks majority investor, Goldman Sachs advises - sources
23 NOV 2017
Canali, an Italy-based luxury menswear brand, has mandated Goldman Sachs to find it an external investor, four sources briefed on the situation said.
The sale process is ongoing, and is for a majority stake in the company, the first and second sources briefed said, adding that the brand needs to be refreshed and relaunched.
The vendors are looking for a double-digit valuation, the first source added, noting that these high price expectations could make it difficult to realise a deal. Canali generated EUR 200m revenues in 2016, with c EUR 20m EBITDA, the same source said.
Canali did not return requests for comment, and Goldman Sachs declined to comment.
The menswear industry is not at its most brilliant, the second source briefed added. In October, Canali closed its plant in Carate Brianza, firing 134 people, as reported by the Italian press.
The second source briefed noted that despite a slump in the menswear market, high levels of available liquidity have helped with deals for other companies in the same niche, for example Boglioli, which private equity firm PHI Industrial Acquisitions bought in May this year for an unspecified amount, as reported by Mergermarket.
In 2015, Boglioli posted EUR 35.6m revenues, 20% of which was generated in the US, but also had negative EBITDA and EUR 15m debt.
Canali was founded by brothers Giovanni and Giacomo Canali in 1934. They opened a manufacturing workshop in Brianza, Northern Italy, an area known for fashion. Initially, the company specialised in producing raincoats, and over the years moved into tailoring. So far, it is still a family business.