Spanish brand Desigual is planning for further growth after a European investor bought 10% of its share capital from the company’s Swiss founder, Thomas Meyer.
French firm Eurazeo today announced it had bought shares worth £240m from Meyer to secure the growth of the young fashion brand.
The agreement grants Eurazeo governance and investment protection rights over Desigual, which was created in Spain in 1984, and designs and distributes its clothes.
Eurazeo said that Desigual’s “multi-channel sales strategy” had “enabled the brand to develop rapidly over the last 10 years”.
It said revenues had increased tenfold since 2007. In 2013, revenues were up 18% on 2012. The EBITDA margin rose 29% in 2013.
At the end of 2013, Desigual had 405 stores in 109 countries, 2,500 corners in department stores and more than 11,000 multi-brand doors. Digital sales generated 10% of revenues.
Eurazeo will support Desigual’s strategy to increase its geographic expansion in Europe and bolster its recent international development, particularly in the United States, Latin America and Japan.
The roll-out of the brand will also include an enriched offering with new product categories, such as accessories, footwear and household goods.
The proceeds from the share capital increase will be used, amongst other things, to sustain and accelerate the development of Desigual and its retail network and build a state-of-the-art distribution hub.