Roberto Cavalli in advanced talks to sell majority stake to Permira

According to Reuters, Roberto Cavalli is in advanced talks with investment fund Permira to sell a majority stake in his company for an estimated 450 million euros ($621 million). Roberto Cavalli himself would retain between 20 and 40 percent of the company.

Permira, headquartered on London’s Pall Mall close to Buckingham Palace, has deep pockets after it raised 5 billion euros ($6.9 billion) for a new fund in February. Permira still has a controlling stake in German fashion house Hugo Boss and earlier this year secured control of British footwear brand Dr. Martens for 300 million pounds ($500 million). In 2012, Permira sold Valentino for $850 million to Qatar’s Mayhoola. 

After any Roberto Cavalli stake sale, other family-owned brands are expected to be targeted more aggressively by deal-hungry financial sponsors. Possible attractive targets include fashion house Etro, knitwear brand Missoni, clothing producer Blufin, known for its core brand Blumarine, and footwear manufacturer Fratelli Rossetti, several industry sources said.

UPDATE 18 April 4 pm GMT

Roberto Cavalli SpA has issued a press release categorically denying that the company has not signed any agreement regarding the sale of the company.

Roberto Cavalli global flagship store Milan, Via Montenapoleone