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Versace and Leica


M9reno

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Blackstone has acquired a minority position in Versace. I don't think this has yet been picked up on this forum.

 

See:

Fashion house Versace sells stake to Blackstone to fund growth | Reuters

 

Blackstone doubtless has its fingers in many other companies, but the statement that Versace "lacked the cash to expand rapidly in fast-growing markets abroad" rings a bell, doesn't it?

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There's no reason to link this to Leica, as you say they will have many investments.

 

However when investors or management consultants think they've found a clever solution for a company they will often try to apply the same solution to other similar companies, so yes, it does ring a bell!

 

Unfortunately - from a photographers point of view - it's another indicator of the direction that Leica seem to be heading, similar to the Hermes days. Of course if it works this time, Leica and Blackstone will be happy, which is really all that matters.

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Well, check it out:

 

Germany's Jack Wolfskin plans growth for UK

 

Jack Wolfskin has gone for an aggressive expansion of its stand-alone boutique outlets, much like Leica is doing now.

 

Versace, while a family-run company, was having to close stand-alone outlets. Its new agenda with Blackstone's help is (surprise!) nearly to double the current number of Versace boutiques, in places like Turkey, Japan and Korea.

 

I'm sure we are bound to see many more Leica Store openings around the world. This is in itself a market-capturing strategy, has the benefit of speed, and is largely independent of technological development. Blackstone's influence seems at a glance to be focused on: marketing, marketing, marketing.

Edited by M9reno
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The Blackstone Group like many PE investment houses (e.g. KKR), acquire stakes in many companies over time. Like others they are always looking for multiples in growth and profitable exits.

 

As a key stakeholder, they do advise on growth strategies, divestment strategies and M&A strategies. Obviously if there are synergies within their investment portfolio, it would be advantageous for them.

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