Eurazeo Invests 285 Million Euro in Desigual


Eurazeo Invests 285 Million Euro in Desigual


PARIS, Mar. 19, 2014 /PRN=KYODO JBN/ --

    Eurazeo announces its partnership with Desigual to accompany the growth of

the brand. Eurazeo will subscribe to a 285 million Euro capital increase and

receive 10% of the share capital of the group owned by its founder, Thomas

Meyer. This agreement grants Eurazeo governance and investment protection

rights, reflecting the true partnership forged between the parties.

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    Created in Spain in 1984, Desigual designs and distributes clothing and

accessories for women, men and children. Its values, strong creativity and

unique positioning give it a true identity. Its multi-channel sales strategy

has enabled the brand to develop rapidly over the last ten years.

    The company is enjoying exceptional growth, with revenues increasing

tenfold since 2007 and compound annual growth of 29% between 2009 and 2013. In

2013, revenues reached 828 million Euro, up 18% on 2012. With an EBITDA margin

of 29% in 2013, company profitability is strong, bearing witness to its good

operating efficiency.

    At the end of 2013, Desigual had 405 stores in 109 countries, 2,500 corners

in department stores and over 11,000 multi-brand doors around the world.

Digital sales generated 10% of revenues.

    Eurazeo will support Desigual's strategy which is to continue its

geographic expansion in Europe and consolidate its recent international

development, particularly in the United States, Latin America and Japan. The

roll-out of the brand will also include an enriched offering with new product

categories, such as accessories, footwear and household goods.

    The proceeds from the share capital increase will be used, amongst other

things, to sustain and accelerate the development of Desigual and its retail

network and build a state-of-the-art distribution hub.

    Virginie Morgon, Deputy CEO of Eurazeo, announced: "Global brands are a key

investment sector for Eurazeo and Desigual is a top performer; we are delighted

that Thomas Meyer has chosen Eurazeo to accompany the exceptional development

of his company. As a partner, we will support him and his management team in

accelerating the international expansion of Desigual and establishing it as a

world-class brand."

    Manel Jadraque, CEO of Desigual, said: "Desigual is a positive brand with

unique products that are affordable and for everyone. Eurazeo fully shares our

vision and will be an ambitious and constructive partner to accelerate the

development of the company."

    For more information, please visit the Group’s website:

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    SOURCE: Eurazeo