Furla seals 30 mln euro deal with Tamburi in first step to listing
today May 2, 2016
Italian handbag and accessories maker Furla took the first step towards a stock market listing by announcing a deal that will see merchant bank Tamburi Investment Partners invest at least 30 million euros ($35 million) in the company, it said on Monday.
The family-owned firm, which has doubled turnover in the past five years, has long said it intended to boost sales by stepping up investments and that it would consider a market listing to fund its plans.
In a statement, Furla said Tamburi Investment Partners (TIP) had agreed to buy a soon-to-be-issued 15 million euro convertible bond.
The investment bank will also invest a further 15 million euros in Furla at the time of the listing, the timing of which was not specified.
The company said it would shortly call a board meeting to approve the decision.
The Bologna-based group was founded in 1927 and launched its first collection of branded bags in the 1970s. It has been known since for its clean and minimalist designed leather goods.
In 2015, comparable sales rose by 23 percent, confirming consumers' growing appetite for more affordable luxury brands while demand for bigger, more expensive labels continues to wane.
TIP Chairman and CEO Giovanni Tamburi said the "listing process (has) the purpose to accelerate (Furla's) already remarkable growth, both in revenues and profitability."
At the time of the listing, TIP will have the right to subscribe or have investors of its choice subscribe to a further tranche of the initial public offer.
TIP already holds investments in fashion brands such as Hugo Boss and Moncler.
Furla's earnings before interest, taxes, depreciation and amortisation (EBITDA) last year were up 29 percent to more than 44 million euros.
The group, which has more than 1,500 employees and operates 415 boutiques worldwide, plans to open shops in London, Paris, Melbourne and Shanghai this year.
Over 80 percent of sales last year were outside Italy.
© Thomson Reuters 2020 All rights reserved.