Valentino’s parent company has reportedly been confirmed Wednesday to have paid millions to purchase Balmain.
According to an article on The Fashion Law, Valentino’s parent company Mayhoola, a Qatari investment fund owned by the countries royal family, has been confirmed to have paid €485 million (about $584 million) to purchase French luxury brand Balmain.
Balmain is reportedly interested in having the same success as Valentino, who now makes $1 billion in sales annually. That was company’s goal when Mayhoola purchased it a couple of years ago, according to an article on Fashionista. Balmain’s annual revenue for 2015 has been estimated to be about $136 million.
Valeninto also has plans to open up to 30 new stores this year.
Balmain’s first U.S. boutique in New York opened in March. In a statement, CEO of Balmain, Emmanuel Diemoz, says sales do well every time a new collection is released. They are, however, still disappointed that much of brand’s collection can’t be purchased by American shoppers.
Balmian currently only has 17 stores according to an article on WWD.
Bucéphale Finance, a boutique mergers and acquisitions firm that assisted Balmain investors with the deal, released a statement saying the deal “will allow the brand to accelerate its development, notably with the opening of new stores abroad,” according to an article on The New York Times.
The statement continued to say, “after completing this transaction, Mayhoola for Investments will hold 100 percent of Balmain’s capital.”
Rumors of the deal began to circulate in April that Valentino offered $569 to buy Balmain after WWD reported that Balmain’s owners were looking to sale the brand. A Chinese group and an American investor were also reported to have offered to buy the brand as well as private equity fund L Capital.
Both Valentino and Balmain declined to comment about the rumors.
So, what do you think? Will Balmain have the same success as Valentino? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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