(Adds COO comments, background)
By Matthieu Protard
PARIS, March 18 French investment group Eurazeo
agreed to invest 285 million euros ($397 million) in
Spanish fashion label Desigual to take a 10 percent stake in the
company through a capital increase and help it fund its
The transaction gives the Barcelona-based brand an
enterprise value of 2.7 billion euros, Eurazeo said, adding that
a stock market listing for the company could follow.
"It's a possible option," Eurazeo Chief Operating Officer
Virginie Morgon said in an interview on Tuesday.
She said the group did not plan "in principle" to increase
its stake in Desigual, but added: "We don't rule anything out."
Eurazeo made proceeds of around 270 million euros through
the mid-December initial public offering in Milan of luxury
goose down jacket maker Moncler, in which it had held
a 31.2 percent stake.
Desigual said in January it was accelerating its expansion
in Europe and emerging markets, and hoped to achieve 1 billion
euros in sales this year, up from 828 million last year. Its
core margin was 29 percent in 2013.
Desigual has gained a reputation for bright garments and
bold marketing, offering free clothes to shoppers who arrive in
their underwear to special sale parties. At the end of 2013,
Desigual had 405 stores in 109 countries.
"Eurazeo will support Desigual's strategy, which is to
continue its geographic expansion in Europe and consolidate its
recent international development," Eurazeo said on Tuesday. "The
roll-out of the brand will also include ... new product
categories, such as accessories, footwear and household goods."
"The three geographic zones we've identified as the most
promising for Desigual over time are the United States, Brazil
and Japan," Morgon added.
Desigual was founded in Ibiza in 1984 by Swiss designer
Thomas Meyer, until now the company's sole shareholder.
($1 = 0.7188 Euros)
(Writing by James Regan; editing by Andrew Callus and Keiron