Valentino offers to acquire Balmain for €500 million
Valentino offers to acquire Balmain for €500 million
The fashion world is abuzz with the news, reported by French newspaper Les Echos on 3 April 2016, that Valentino which is owned by Qatari investment entity Mayhoola has offered €500 million (£400.42 million) to buy Pierre Balmain.
The French fashion house, which is led by capable artistic director Olivier Rousteing, has also received competitive takeover offers from an unnamed Chinese group and an American investor.
The heirs of Pierre Balmain’s founder, Alain Hivelin, reportedly have until Thursday 7 April 2016 to decide whether to accept one of the three offers. The purported ownership change follows previously reported news that Alain Hivelin’s heirs were looking to give up their control of Balmain and sell it. Interestingly, reports state that Hivelin’s heirs had given a sale mandate to Bucéphale Finance, a French investment bank, and a sale could value the company at €300 to €400 million. Balmain’s most recently reported annual revenue totalled €30 million.
Rousteing has been Balmain’s creative director since being appointed in 2011 by his mentor Hivelin. In the years since Rousteing took over as Creative Director of Balmain, from predecessor Christophe Decarnin, he has helped bring the label to its newfound popularity. Particularly amongst younger consumers, with his social media fame, Balmain army (consisting of his close celebrity relationships with the likes of Kendall Jenner, Rihanna and Kim Kardashian) and high-demand collaboration with H&M last year (which made the brand more accessible).
Valentino offers to acquire Balmain for €500 million
