BRDH Burani

    RNS Number : 1665X
  Burani Designer Holding N.V.
  20 June 2008
   


    





    BURANI DESIGNER HOLDING'S LISTED LEATHER GOODS DIVISION ANTICHI PELLETTIERI ANNOUNCES THAT 3i HAS ACQUIRED A 49% STAKE IN ITS HANDBAGS
AND ACCESSORIES DIVISION



    Burani Designer Holding N.V (AIM: BRDH), a company offering Italian lifestyle products and services to customers world-wide, today notes
that the company's listed leather goods division, Antichi Pellettieri, majority owned by BDH's subsidiary Mariella Burani Fashion Group
S.p.A (MBFG), in which BDH holds a 60.93% stake, made the following announcement this morning: 

    PRESS RELEASE
    ANTICHI PELLETTIERI  
    Cavriago (RE), June 20, 2008

    3i ACQUIRES A 49% STAKE IN THE HANDBAGS AND ACCESSORIES DIVISION OF ANTICHI PELLETTIERI 
    3i, the world's leading mid-market private equity company, and the funds managed by 3i, announce that they have signed a binding
agreement with Antichi Pellettieri S.p.A., the Leather Goods Division of Mariella Burani Fashion Group, for the acquisition of a 49% stake
of the newly constituted APB Srl ("Antichi Pellettieri Bags" or "APBags"). APB is the holding company of Francesco Biasia, Braccialini, and
Coccinelle as well as Mandarina Duck (acquisition to be completed).

    3i will invest EUR 128 million in exchange for a 49% stake in APB. EUR 118 million will be exchanged on the date of closing while the
remaining EUR 10 million will be paid based on APB's performance.

    The proceeds of the transaction will allow Antichi Pellettieri Group to eliminate its outstanding debt resulting in a positive Net
Financial Position.

    The enterprise value attributed to APBags of approximately EUR 355 million, slightly lower that the value currently attributed to the
complete Antichi Pellettieri Group at the date of acquisition (EUR 415 million).

    In addition, the Board of Directors of AP has expressed its intention to transfer, as soon as possible, its listing from the Expandi
segment of the Italian Stock Exchange to MTA.  

    THE TRANSACTION
    The agreement provides that 3i will acquire 49% of the equity of APB, a newly constituted company fully controlled by Antichi
Pellettieri that today holds a 14% stake in Francesco Biasia. Prior to closing, all shares currently held by Antichi Pellettieri in
Francesco Biasia, Braccialini, Coccinelle as well as the 100% stake in Mandarina Duck (acquisition not yet closed) will be transferred to
APB.

    The closing is expected to occur at the end of July, subject to approval from European anti-trust authorities and to compliance with
conditions typical for this type of transaction.

    Antichi Pellettieri, 3i and APB have agreed terms of a shareholder agreement regulating the governance of APB, restrictions on
transferability of APB shares, as well as exit routes for 3i.

    Antichi Pellettieri will publish an information memorandum detailing the operation within the terms stated by law.

    At closing, according to the terms of the shareholder agreement, 3i will nominate Marco Fumagalli, Marco Piana and Giacomo Santucci
(former CEO of Gucci) as members of the Board of Directors of APB.

    The substantial injection of capital provided by 3i will sustain Antichi Pellettieri's strategy to fully develop the unexpressed
potential of its handbag and accessories brands by consolidating the company's leadership in the Italian affordable luxury sector and by
strengthening its presence in emerging Asian markets.

    3i Group, quoted on the London Stock Exchange since 1994, part of the FTSE 100, and one of the  Europe's 250 largest quoted companies,
has invested over EUR25 billion in companies located throughout the world, including Europe, Asia and America. Selected 3i investments in
the Consumer Goods and Retail sectors include: Gant (apparel), Agent Provocateur (lingerie), John Hardy (jewellery), Giochi Preziosi (toys),
Printemps China Deparment Stores (high-end retail), and Foster & Partners (design). 

    APB is expected to accelerate its growth in the Chinese and Indian market, where its presence is currently limited, by leveraging on
3i's extensive network of strategic and industrial partners in the region, such as Printemps China Department Stores, a department store
operator focused on luxury and high-end branded fashion and accessories with a network of 12 high-end department stores across China.

    The founder of PCD is Alfred Chan, who also owns Ports, active in the design, production, and distribution of fashion apparel and
accessories collections with 350 stores in China, North America and Europe, turnover of USD 1.4 billion and a market capitalisation of USD
1.6 billion.

    With the help of 3i, APB is expected to generate over EUR450 million by 2011, driven also by the expected reinforcement of its
international distribution network to include the inauguration of 100 boutiques over the next four years.

    Antichi Pellettieri SpA will maintain control of the footwear division (brands Baldinini, Sebastian, Cerutti, Missoni, Pfister) and of
the leather apparel and pr a porter collections (Ter et Bantine, Mandelli and Vivienne Westwood). This is the fastest growing division of
Antichi Pellettieri Group and is expected to generate revenues of approximately EUR 160 million for the year in progress; revenues in the
first five months of 2008 have grown by 38% compared to the same period in 2007.

    Giovanni Stella, the CEO of Antichi Pellettieri, stated "We share a common strategy with 3i and are optimistic about the development
opportunities provided to APB by the extensive network of strategic and industrial partners that 3i has developed in the emerging markets".


    Marco Fumagalli, Managing Director of 3i Italy noted: ""We have found the ideal partner in APB to complement and further extend our
international presence in the luxury goods sector. The deal will reinforce our already strong presence in the international luxury goods
sector and will allow us to develop synergies among our portfolio companies, generating value for our shareholders.".  

    Sole advisor in the transaction: Tamburi & Associati - Advisory division of Tamburi Investment Partners S.p.A.

    Advisors for Antichi Pellettieri in the transaction were Lagance Studio Legale Associato and Studio Marchesi Colombo Cipolla Mattavelli
& Associati; 

    Advisors for 3i in the transaction: Studio Legale Chiomenti, KPMG, and Value Partners.

    Antichi Pellettieri S.p.A. is a European leader in the accessible segment of the luxury goods market with a consolidated international
presence. The Group designs, produces, and distributes handbags and accessories, footwear, and leather apparel collections characterised by
top quality and innovative design. A flexible business model provides for control at all critical phases of the production and distribution
cycle including, product design and development, production planning, raw material procurement, quality control, marketing, public
relations, and distribution. Production and logistics functions are outsourced to an established and qualified base of third party
contractors, closely controlled by AP to guarantee quality and efficiency.  

    About 3i
    3i is a world leader in private equity. We focus on Buyouts, Growth Capital, Infrastructure and Quoted Private Equity ("QPE") and invest
across Europe, the United States and Asia. Our competitive advantage comes from our international network and the strength and breadth of
our business relationships. These underpin the value that we deliver to our portfolio and to our shareholders.
    www.3i.com



    Contacts

    Carol Brumer Investor Relations e Strategic Development: cbrumer@mariellaburani.com, tel. (+39) 02 76420111 
    Daniela Zari Direttore Corporate Communication: dzari@mariellaburani.com, tel. (+39) 02 76015354



    Enquiries:

 Burani Designer Holding N.V.         Tel: +39 027 642 0111 / +39 348 256 1971
 Carol Brumer (cbrumer@buranidh.com)

 Citigate Dewe Rogerson               Tel: +44 20 7638 9571
 Kate Delahunty 
 Lindsay Noton

    www.buranidh.com



    NOTES TO EDITORS

    Burani Designer Holding offers a complementary range of "Italian lifestyle" products and services to an international customer base. The
Group is active in the accessible segment of the luxury goods sector through its subsidiary MBFG that provides fashion, leather apparel and
jewellery collections to an international client base, and directly in three complementary business areas; Beachwear & Underwear, Wellness &
Skincare, and Food Design. BDH, listed on the Alternative Investment Market (AIM) in London in June 2007, focuses on growth through the
acquisition of "Italian lifestyle" companies which are grouped into operating divisions in order to benefit from the increased size and the
numerous synergies of the Burani Group. Management believes the combination of MBFG's in-depth knowledge of luxury goods markets and
products, the strategic shareholders in BDH, the Group's investment approach, and the skills of the BDH management team provide a unique
opportunity to create value for shareholders.


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