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MILAN, Italy — Luxury goods group LVMH is said to have made an offer for Pomellato, adding suspense to the protracted battle to acquire the Milan-based jeweller, which has been seeking capital since 2011.
In recent weeks, PPR had emerged as the front-runner, outbidding rival suitors including Prada, Swarovski and Damiani (who already own an 18 percent stake in the company). Yet, according to the Italian newspaper Il Sole 24 Ore, LVMH has recently entered the field with an offer that is higher than PPR's, which valued the company at around 350 million euros ($455 million, 15 times Pomellato's EBITDA), according to Reuters.
Pomellato would bolster the portfolio of both French luxury groups. While LVMH is seeking to replicate the success of its takeover of Italian jewellery and luxury goods brand Bulgari, last year, PPR, whose only jewellery property is Boucheron, has been gradually exiting its low-growth retail businesses to focus on its faster-growing luxury and lifestyle brands.
Pomellato sales rose about 10 percent, to almost 150 million euros ($196 million), in 2012.
Disclosure: LVMH is part of a consortium of investors which has a minority stake in The Business of Fashion.