GOLDEN GOOSE ACQUIRED BY PERMIRA

©Golden Goose

Golden Goose, the Italian brand whose deliberately scruffy-looking trainers sell for as much as GBP 1,000, has been sold  for just under Euro 1.3 billion from The Carlyle Group to Permira, the private equity firm that also owns Dr Martens and recently acquired Reformation. Permira will buy the business from the US buyout group, which acquired the firm for Euro 400 million just three years ago.

Golden Goose, which was founded in 2000 by designers Francesca Rinaldo and Alessandro Gallo, has a long history of private equity ownership. In 2013, it was sold to Italian private equity fund DGPA which flipped it to mid-market investment firm Ergon Capital two years later. Carlyle made its swoop on Golden Goose in 2017 driving its expansion in the United States and Asia with flagship stores in New York, Tokyo and Beijing. 

Under the ownership of Carlyle, which also owns Supreme, Golden Goose opened 100 stores, including flagships in New York, Beijing and Tokyo. Furthermore, led by Chief Executive Silvio Campara, Golden Goose has diversified its product range to include clothing and accessories, though trainers make up about 80 per cent of its revenues. Revenues at Golden Goose rose from Euro 140 million in 2017 to more than Euro 260 million last year attracting a celebrity following that includes Taylor Swift, Gwyneth Paltrow and Jude Law.

“This is really about backing the sneaker trend, the casualisation of everybody’s wardrobes,” said Tara Alhadeff, a principal at Permira who worked on the deal. “Once people realise you can look good and be comfortable, that’s an irreversible move people make in their wardrobes.” Like Dr Martens, she said, it’s a “uniquely powerful brand that resonates with consumers”.

The transaction values Golden Goose at 14 times its 2019 earnings, people familiar with the matter said. The hefty price tag indicates how hot competition for deals is among private equity firms, which have record sums to invest. Rival buyout firm Advent had also made an offer for the company, a person familiar with the matter said.

When Carlyle bought Golden Goose, it was a “little jewel” that was seeing “the first signs” of the celebrity interest that would go on to fuel sales, said Marco De Benedetti, co-head of Carlyle’s European buyout group. “We thought the brand had significant potential back then,” he said. “We always like opportunities where we can transform [a business].”