London—Mayhoola for Investments S.P.C, an investment firm apparently backed by Qatari royal family members, has reported purchased the Valentino Fashion House for 600 million euros (about $857 million).
Permira, the private equity group that bought Valentino in 2007, confirmed the deal today but didn’t disclose financial details. Analysts estimated the deal to be about 31.5 times Valentino’s 2011 EBITDA.
“Valentino is ideally suited to form the basis for a global luxury goods powerhouse,” a representative for Mayhoola said earlier today.
The Qatari royal family, which already owns Harrods, appeared to be building a luxurygoods conglomerate that could eventually rival European ones. Among the other assets the Qataris have taken stakes in include Porsche and Barclays.
The latest purchases may be instigated by Sheikha Mozah, wife of the Qatari Emir, and a longtime fan of Valentino. Mozah also owns the Qatar Luxury Group, which has a stake in French leathergoods company, Le Tanneur & Cie.
The deal with Permira and minority investors the Marzotto textile entrepreneurs will give the Qataris control of the M Missoni casualwear line. Malboro Classic, a outdoor sporty brand, will remain under Red & Black, the Permira-owned arm that owns the controlling stake in Hugo Boss.
Permira bought Valentino Fashion Group, which included Hugo Boss, in 2007 at market peak for 5.3 billion euros.
Some analysts said that it’s likely more purchases could be ahead especially in Europe.
“We can expect to see many more individual investors looking at European luxury. The IPO market is tough and emerging market players from China and the Middle East are the main players now,” an analyst told Reuters.