Investment fund Permira has lowered its interest in German fashion label Hugo Boss to 56 percent, after selling 10 percent of its shares. The next few months no extra shares will be sold.
Second lowering of Permira interest
Permira procured part of Hugo Boss and then parent company Valentino Fashion Group in 2007: it got hold of 72 percent of shares through its subsidiary Red & Black.
This was the third step in a longer process: in November 2011 Permira already lowered its interest in Hugo Boss to 65.56 percent and last year it also sold its interest in Valentino to an investor from Qatar.
Permira profited from the higher value of Hugo Boss when it sold its shares: since 2007 the value of of Hugo Boss has doubled. The transaction happened at a rate of 87.50 euro per share, bringing the total value of the package to 612.5 million euro.
At the end of last week there was however a drop of six percent, when disappointing results for the first quarter of 2013 were announced. Company sales were two percent lower than in the same period of 2012 at 593 million euro. Especially in Europe and China sales were struggling.