PARIS, March 18, 2014 /PRNewswire/ --
Eurazeo announces its partnership with Desigual to accompany the growth of the brand. Eurazeo will subscribe to a €285 million 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, 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: www.eurazeo.com