French fashion label Isabel Marant in sale talks with Eurazeo-sources

PARIS, Dec 18 (Reuters) - French fashion label Isabel Marant is in preliminary talks with Eurazeo to sell a controlling stake to the private equity firm, sources close to the matter said on Friday.

Isabel Marant, a Parisian brand set up in 1994 and still in the hands of its eponymous founder and associates, is estimated to generate annual sales of close to 200 million euros ($216 million), according to one of the sources.

Eurazeo has been holding discussions with Isabel Marant for several weeks but a deal is not imminent, another source said. The private equity firm is still conducting due diligence and a deal may take a few weeks, if not months, to materialise, that source said, adding that it was not certain to go ahead.

Isabel Marant, known for its modern, urban style, raised its profile in 2013 when it produced a collection for fast-fashion retailer H&M. It has 19 boutiques worldwide and makes the bulk of sales from wholesellers such as department stores and multi-brand stores.

Isabel Marant is keen to raise capital to expand its global footprint and widen its ranges of products such as leather goods, one of the sources said.

Eurazeo has made many investments in the fashion and luxury industry in recent years. In September, it took part in a fund raising round for online, second-hand, luxury retailer Vestiaire Collective and last year took a 10 percent stake in Spanish fashion label Desigual.

Eurazeo has made sizeable profits by investing in Italian luxury down jacket maker Moncler, which floated on the Milan stock exchange two years ago.

Isabel Marant and Eurazeo declined to comment. ($1 = 0.9240 euros) (Editing by James Regan)