Le Tanneur to have new majority shareholder

France
Published:  28 June, 2017

Qatar Luxury Group (QLG), which has controlled 85.6% of the French leather bags brand since 2011, confirmed it has entered into negotiations with Tolomei Participations, a private equity firm specialised in growth capital, leveraged buyouts and turnaround investments.

Advised by Baker McKenzie, QLG’s €13.3 million deal will recapitalise Le Tanneur and make Tolomei the majority shareholder. The private equity firm already has several brands linked to the leather sector in its portfolio, including Pare Gabia, Renaud Pellegrio and PK-24.

"This recapitalisation and development plan looks to significantly improve Le Tanneur's prospects, allowing the repayment of QLG's €9.5 million shareholder loan to date, while having the means to continue development and to partner with Tolomei's recognised expertise and experience in the manufacturing and distribution of luxury leather goods", said a statement.

After having closed down several stores in 2016, Le Tanneur & Cie has 50 stores worldwide and is said to have 80 concessions within major department stores, and to be stocked in 300 multi-brand retailers internationally. In 2016, revenues were reported to have dropped 5.2%, to €54 million.

Source: Fashion Network