Finamore 1925 seeks private equity funding to fuel expansion
Finamore 1925, a privately held Italian shirt maker, is seeking private equity investment in an effort to accelerate its expansion plans, said Simone Finamore, a board member and the company's sales director. Management is open to approaches directly from interested parties, as well as from advisors with potential investors.
Established in Naples in 1925 by Finamore's great grandmother, Vincenza Finamore, the company is wholly controlled by the founding family. The company is now managed by the fourth generation, Finamore said, explaining that his siblings Paolo, Andrea and Annamaria are running the business respectively as product manager, CFO and retail manager.
Financially, the company is growing year over year, he said. In 2014, the group generated a turnover of EUR 6m, up from EUR 5.4m of the previous year. For this year, Finamore is predicting a rise in sales of around 10% due to the company's business developments in Korea and its entry into Turkey.
Finamore 1925 gets most of its earnings through exports, which accounted for the 90% of the company's sales last year, Finamore explained. He pointed to Japan, Korea, all of Europe and New Zealand as the company's key markets.
In order to increase its sales abroad, the family's owners would be interested in approaches from private equity firms, he said. Suitable candidates would have extensive expertise in the retail industry, Finamore said, noting an investor with a retail background could help speed up the company’s internationalization.
The company has received approaches from interested parties in the past, Finamore said, but a deal has never materialized. Strategic bidders would not be ideal, he added, noting that the company is developed enough to be competitive in the fashion industry and to update its collections.
The owners will look only consider offers for a minority stake, with 49% the maximum, the executive said, adding that the family would like to remain involved in the business. Finamore did not spell out the company's valuation and how much they intend to raise from this transaction; however, he noted that management would like to share and implement its business plan together with the investor.
Proceeds from the stake sale would be used to expand into Latin America, China and the Middle East, the executive said. He pointed to the high regard for Italian brands in these countries, especially for products with a strong "Made in Italy" character. Management intends to extend its retail network into these target countries, he said, and taking on a financial backer with the relevant contacts in the retail industry would be key to accelerating this project.
The company is headquartered in Naples. It has 60 employees.