Information on the Target
The Made in Italy Fund, managed by Quadrivio & Pambianco, recently acquired majority stakes in two prominent footwear brands: Autry and Ghoud. This dual investment marks an important strategic move within the fashion sector, particularly in the sneaker market where both brands have established significant presence. Autry is renowned for its distinctive ’80s-inspired designs that appeal to both male and female consumers, prominently featuring the iconic American flag on its footwear. Meanwhile, Ghoud, founded in 2017, positions itself within the ‘accessible luxury’ segment, offering minimalist designs that prioritize quality and meticulous attention to detail.
Both companies are specialized in the production and distribution of sneakers, with a combined estimated turnover of €25 to €30 million in 2021 and an EBITDA ranging from €7 to €9 million. This investment represents the Made in Italy Fund's ninth and tenth entries into the market, further solidifying its focus on the fashion industry, which already includes other reputable brands such as 120% Lino, Rosantica, GCDS, and Dondup.
Industry Overview in Italy
The footwear industry in Italy is a significant segment of the country's vast fashion landscape, noted for its craftsmanship, design innovation, and brand heritage. The Italian sneaker market has witnessed impressive growth, driven by a rising demand for both luxury and accessible products that combine style with comfort. The country’s reputation for high-quality production processes has positioned it favorably in the global market.
As consumer preferences shift towards casual and athleisure footwear, brands that can blend traditional craftsmanship with contemporary style are likely to thrive. The sneaker market's resilience during economic fluctuations has been notable, with sales increasing even amid difficulties faced by other sectors. Italy’s advanced design capabilities, paired with a rich history in fashion, bolster its competitiveness in the global footwear arena.
Furthermore, Italy stands as a central hub for fashion events, trade shows, and influential marketing strategies, which enhances brand visibility and consumer engagement. Innovative approaches, such as sustainability initiatives and e-commerce enhancements, are also reshaping the industry landscape, opening doors for brands to connect with a wider demographic.
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The Rationale Behind the Deal
The strategic investment is expected to leverage the synergies between the brands and their shared emphasis on quality and design. With both companies already generating substantial revenue, the focus can shift to optimizing operations and expanding market reach under the stewardship of experienced leaders like Marco Doro and Patrizio di Marco.
Information About the Investor
Quadrivio & Pambianco, the managing entity of the Made in Italy Fund, specializes in private equity investments across various sectors, with a pronounced focus on fashion and luxury. Their expertise in identifying lucrative opportunities has positioned them as a key player in the investment landscape, particularly within Italy's robust fashion industry.
The fund aims to support growth-stage companies that exhibit strong potential for scalability while honoring the rich heritage and craftsmanship that characterize Italian fashion. The inclusion of prominent figures such as Patrizio di Marco, a former leader at major fashion houses including Golden Goose and Gucci, lends credibility and strategic insight, ensuring that these brands can benefit from exceptional leadership and market knowledge.
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From an expert perspective, this investment by the Made in Italy Fund into Autry and Ghoud is assessed as a strategic and potentially lucrative move. Both brands possess strong market identities and have demonstrated resilience and adaptability in a rapidly evolving industry. The growing trend towards casual and luxury footwear uniquely positions them to capture higher consumer spending in a post-pandemic world.
Moreover, the infusion of expertise from experienced leaders in the field suggests that the companies are well-equipped to navigate market challenges and capitalize on emerging opportunities. Their collective experience in the fashion industry enhances the likelihood of successful brand positioning and operational growth.
However, challenges such as intense competition and shifts in consumer behavior remain areas of concern. Investing in innovation, marketing, and sustainable practices will be critical in ensuring that both brands maintain relevance and attractiveness in the fiercely competitive sneaker market. Overall, the investment is likely to yield fruitful results if managed effectively, making it a promising addition to the Made in Italy Fund's portfolio.
Similar Deals
Quadrivio & Pambianco
invested in
Autry and Ghoud
in 2021
in a Buyout deal
Disclosed details
Revenue: $29M
EBITDA: $8M