PPR to buy Italian suit firm
French luxury and retail group PPR has agreed terms to acquire an Italian suitmaker to increase its presence in high-end men’s fashion, according to Reuters.
PPR did not disclose the price it paid for Brioni, whose suits have been featured in many James Bond films. But analysts estimate Brioni's enterprise value at EUR250 million to EUR300 million, including EUR100 million in debt.
PPR chief executive Francois-Henri Pinault, who announced in September that the company was in talks with Brioni, said the company had paid “significantly less” than the EUR350 million figure cited earlier this year.
PPR said it plans to boost growth at Brioni, which has 1,800 employees at eight different production sites, through expansion into emerging markets and a wider product range. Mr Pinault said PPR is particularly interested in expanding Brioni's presence in mainland China, where it is currently only present via franchise shops.
As well as men’s suits, Brioni also makes leathergoods, ties and shirts. It had revenue last year of EUR170 million and has its main workshops in the Abruzzo region of Italy as well as a network of 74 stores worldwide.
