Italy-based Dr. Vranjes Firenze has attracted the interest of fashion conglomerate LVMH [EPA: MC], one of two parties that are eyeing the asset as part of an ongoing sale process, two sources familiar with the situation said.
The BlueGem Capital Partners-owned business has also been in advanced talks with an unnamed second bidder described as a fund, according to the sources.
This news service previously reported the company was in early-stage sale talks with an unnamed, foreign luxury-sector player.
More bidders are expected to join the race up until January, one of the sources said, adding that an outcome is expected in the first quarter of 2023.
The sale is being handled by Rothschild, as previously reported by this news service. Latham & Watkins is handling legal matters, one of the sources said.
BlueGem is looking to exit at a roughly 10x EBITDA multiple, based on Dr. Vranjes Firenze's heritage, size, and market positioning, this news service reported, with average industry multiples for similar companies reaching upwards of 6x-8x EBITDA. Dr. Vranjes Firenze is targeting EUR 15m EBITDA in 2022, as reported.
BlueGem bought a 70% stake in Dr. Vranjes Firenze in 2017.
BlueGem, LVMH and Latham & Watkins did not respond to requests for comment.
