China's HongShan Capital Eyes Golden Goose in 2.5 Billion Euro Luxury Bid
China's HongShan Capital Group (HSG) has reportedly made a significant move in the luxury market, submitting a 2.5 billion euro ($2.91 billion) offer to private equity firm Permira to acquire Italian luxury sneaker manufacturer Golden Goose. The Chinese investment group is aiming to finalize this high-profile deal before Christmas, according to a report by daily la Repubblica.
While specific details are still being ironed out, the proposed offer values Golden Goose at ten times its anticipated core profit by the end of the year, a figure that includes the company's existing debt. For the year 2024, Golden Goose reported impressive financial results, with total revenues reaching 655 million euros and an adjusted core profit of 227 million euros, underscoring the brand's robust performance in the luxury sector.
Looking ahead, HSG has ambitious plans for Golden Goose, including inviting veteran fashion industry executive Marco Bizzarri to assume the role of the luxury group's future chairman. The Chinese private equity firm intends to significantly expand Golden Goose's footprint, particularly focusing on increasing its directly-managed stores, with a strong emphasis on growth in the lucrative Asian market. Furthermore, HSG reportedly plans to list the group on the stock exchange in the medium-term.
This potential acquisition follows Golden Goose's previous attempt to go public. Last year, the Venice-based company, renowned for its distinctive sneakers that retail for upwards of 500 euros a pair, postponed its planned initial public offering (IPO) on the Milan Bourse. The decision was attributed to prevailing market volatility and political uncertainty across Europe at the time.
