BRDH Burani

RNS Number:4182Z
Burani Designer Holding N.V.
02 July 2007







2 July 2007






  BURANI DESIGNER HOLDING'S SUBSIDIARY MARIELLA BURANI FASHION GROUP ANNOUNCES
                   SALE OF ITS MULTI-BRAND RETAIL OPERATIONS





Burani Designer Holding N.V (AIM: BRDH), a company offering Italian lifestyle
products and services to customers world-wide, today announces that the
company's subsidiary Mariella Burani Fashion Group S.p.A (MBFG), in which it
holds a 52.8% stake, has made the following announcement:



MBFG Statement



The Board of Directors of Mariella Burani Fashion Group (MBFG) approved, late on
June 29, 2007, the sale of its Multi-brand Retail operations comprised of 100%
of the equity of Revedi Spa, Revedi Sa, Bernie's AG and Don Gil GmbH to Abacus
Invest, a private equity fund promoted by Paolo Vacchino and Luca Sangalli, that
owns 45% of Phard Spa, a women's apparel company.



The sale of the MBFG Multi-brand Retail Division is consistent with the Group's
strategic plan to focus on its leather goods and fashion jewellery operations,
businesses characterised by higher margins.



With the sale of the Multi-brand retail division, the Group's leather goods and
fashion divisions are expected to generate over 65% of 2007 revenues, a target
achieved three years earlier than  provided in the Group's original business
plan.



The Multi-brand Retail operations divested include Revedi Spa with 37 outlet
stores in Italy and 5 stores in Switzerland, Bernie's AG with 17 stores in
Switzerland and Don Gil GmbH with 38 stores in Austria for a total of 97 stores.
The Multi-brand Retail businesses, originally acquired by MBFG for Euro 17,8
million at an average EV/EBITDA multiple 2,2x, generated Euro 118,6 million of
revenues in 2006.



The purchase price for 100% of the equity of the Multi-brand Retail Division is
Euro 75 million of which Euro 60 million payable within December 30, 2007 and the
remaining in instalments payable over the next three years. The EV/Ebitda
multiple on the sale of the division is approximately 10x.



MBFG is expected to reinvest Euro 15 million in the company that has been
established by Abacus Invest to acquire the Multi-brand Retail division as a
means of remaining closely involved in the business and ensuring a continued
revenue stream from the sale of MBFG brands in these stores. Management of the
Multi-brand Retail Division will invest in the new company and remain in key
management roles.



Giovanni Burani, CEO of Mariella Burani Fashion Group indicated: "This
divestiture represents another step in MBFG's stated objective of focusing on
our leather goods and fashion jewellery businesses and on the continued
development of our mono-brand retail network. We will, nevertheless,  remain
committed and closely involved in the joint development of these top quality
businesses as is evidenced by our renewed equity participation therein."





Enquiries:



Burani Designer Holding N.V.                       Tel:  +39 027 642 0111 / +39 348 256 1971

Carol Brumer (cbrumer@buranidh.com)



Lehman Brothers International (Europe)             Tel: +44 20 7102 1000

Alex Thomas

Laura Bergonzini



Citigate Dewe Rogerson                             Tel: +44 20 7638 9571

Kate Delahunty (kate.delahunty@citigatedr.co.uk)

Sarah Gestetner (sarah.gestetner@citigatedr.co.uk)



www.buranidh.com



NOTES TO EDITORS



*         The BDH Group offers a complementary range of Italian lifestyle
products and services to an international customer base.  The BDH Group operates
in the fashion apparel, leather goods and fashion jewellery businesses through
its majority owned subsidiary, Mariella Burani Fashion Group S.p.A. (MBFG), and
in two complementary business segments - beachwear & underwear and cosmetics &
skincare - through the recent acquisitions of Italian companies Arcte S.r.l.,
Crisfer S.r.l. and Eurocosmesi S.r.l.  BDH's business model focuses on the
acquisition and integration of quality "Italian lifestyle" businesses to create
operating divisions which may benefit from BDH's scale and synergies between
group companies. BDH intends to extend this business model, successfully
implemented by MBFG over the past seven years, to a select range of distinct,
yet complementary, segments within the accessible luxury goods market.






                      This information is provided by RNS
            The company news service from the London Stock Exchange
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