PPR Group could buy Hugo Boss

PPR Group which controls luxury brands such as Gucci, Bottega Veneta, Yves Saint Laurent has made an offer exceeding 1 billion euros to the owners of German premium brand Hugo Boss, according to a report by Italian daily Sole 24 Ore. Hugo Boss, which is listed on the Frankfurt Stock Exchange has seen its shares increase dramatically in the past week. Hugo Boss is owned by the Red & Black Hoding of which 80% is controlled by British based investment fund Permira and 20% by the Marzzotto family. It is the same group that owns under the same structure the Italian house of Valentino, sold this week to Qatar.

Hugo Boss, Black line – Fall Winter 2012 2013

Hugo Boss registered record financial results in 2011, reaching a total turnover of 2,059 billion euros (19% increase on 2010), with a growth in its EBITDA of 34% to a level of 469 million euros. Earlier this year, the CEO of Hugo Boss announced a turnover exceeding 3 billion euros by 2015. That is why, PPR’s valuation of Hugo Boss at 6 billion euros seems realistic (PPR Group expects a turnover of 24 billion euros by 2020). Hugo Boss’ current stock exchange valuation is at 5,2 billion euros.