Magnolia, holding company of Fabio Leoncini and Andrea Bucalossi , has today executed the agreement for the investment by Hony Capital of 30% shareholding in Duemmei, owner of Mr&Mrs Italy, Brand best known for its iconic “luxury parka”. Mr Fabio Leoncini and Mr Andrea Bucalossi will remain as the majority shareholders and retain responsibility for the management of the company and will lead its development in the foreseeable future.
Duemmei owns Mr&Mrs Italy, a successful Italian brand in the luxury industry; established in 2007, the brand is now recognized worldwide as the creator of the “luxury parka”. Mr&Mrs Italy’s products are spontaneously endorsed by international celebrities and media influencers around the world.
Thanks to its distinctive design and products completely made in Italy, in the last few years the company has delivered a consistent track record of continuous growth, and expects to close at 57 million Euros revenues in 2017, with international markets accounting for more than 80%.
Mr&Mrs Italy is distributed worldwide through a network of more than 300 exclusive multi-brand stores, along with 9 directly operated stores and 4 franchised ones, by end of year.
Hony Capital is a leading private equity firm in China. Sponsored by Legend Holdings, Hony Capital has approximately US$10 billion assets under management across eight funds, and have made over 90 investments through over 14 years of investment practice. Hony's target industries include consumer, tourism, media and technology, healthcare and advanced manufacturing. Hony has been actively investing in cross-border deals since the buyout of CIFA, an Italy-based construction machinery company, with the portfolio company Zoomlion in 2008, and maintained leadership position in China with substantial team resources, a focused investment strategy and efficient deal execution. The most recent cross-border investments include U.S.-headquartered coworking office space pioneer WeWork, UK's largest casual dining chain PizzaExpress and Hollywood film studio STX.
Mr Bing Yuan, Managing Director, Hony Capital, said: “We are truly excited to join the journey with Mr. Leoncini and Mr. Bucalossi. Consumption upgrade in China is underpinned by increasing demand for aspirational lifestyle and quality products. Luxury consumers are trending much younger as well and looking for more casual and specialized items which they can associate with. Hony has always been following the related sector globally. Mr&Mrs Italy obviously is a great representation of the new consumption trends and basically defines its category. Not only that we have been impressed by its product offering, commercial success so far and most importantly by its strong management team who developed solid track record in the industry. We are very confident with the partnership going forward and believe our resource will bring along complementary value to the company and further its endeavor in Asia, especially in China. We are very much looking forward to that.”
Mr Fabio Leoncini and Mr Andrea Bucalossi, current sharehoders of Duemmei, said: “this moment marks a key milestone in the remarkable trajectory of our company. In very short time our iconic Parka has become a point of reference in the luxury outerwear market segment and we have built a very solid distribution infrastructure which comprises the best windows as well as our own shops in prime locations in the world. With Hony, we have selected the best possible global partner for our company, with a shared vision that will provide a strong support in Asia where we have our core market.”
Lazard acted as exclusive financial advisor in the transaction.The sellers were advised by Doria Investimenti, Latham & Watkins and EY; Hony Capital was advised by Bain Consulting, Bonelli Erede Pappalardo and PwC.