PARIS (dpa-AFX) - French Luxury and retail group PPR SA (PPRUF.PK, PPRUY.PK) on Tuesday said it agreed to acquire Italian men's tailoring house Brioni. The company did not disclose the financial details of the deal. The transaction would be closed at the beginning of 2012, subject to the approval of the competition authorities.
PPR, the owner of Puma and Gucci Group, noted that the acquisition of this menswear-only brand would help it to increase its portfolio of luxury brands in the high-end men's fashion segment, which is currently enjoying strong growth, driven mostly by Asia.
Brioni, an independent family-owned company, was founded in 1945 by Nazareno Fonticoli and Gaetano Saviani. It covers all categories of men's attire as well as fragrances, accessories and leather goods. The company has 1,800 employees and is distributed in 74 boutiques, 32 of which are directly owned stores. In 2010, the company generated revenues of 170 million euros.
François-Henri Pinault, Chairman and CEO of PPR, said, 'Brioni boasts top quality craftsmanship and is synonymous with Italian masculine elegance. It is the reference in ready-to-wear and bespoke menswear and I am delighted that it is joining our magnificent portfolio of luxury brands. We have great ambitions for this fashion house.'
PPR, which generated revenue of 14.6 billion euros in 2010 and had approximately 60,000 employees, noted that Brioni's integration in PPR's Luxury division will boost the brand's potential.
In June, PPR acquired Volcom, Inc. for $24.50 share, or a total equity value of $607.5 million and an enterprise value of $516.1 million.
PPR closed Monday's trading at 109.45 euros, up 0.95 euros or 0.88 percent in Paris.
In the U.S., PPRUF.PK last traded on October 31 at $159.
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© 2011 AFX News
