Handbag maker Furla reached an agreement with Tamburi Investment Partners that moves the Italian fashion company closer to an initial public offering.
TIP will underwrite a 15 million-euro ($17.3 million) loan that will convert automatically into Furla shares upon listing, the companies said in a joint statement Monday. Going public will help family-owned Furla compete globally and allow employees to benefit from growth, according to the statement, which didn’t give a timing for any IPO.
Furla Chief Executive Officer Eraldo Poletto raised the possibility of a listing in an interview in February, when he said that developing scale is “vital because our competitors are in some cases more than 10 times our size.” Furla’s revenue last year surged 30 percent to 339 million euros, while earnings before interest, taxes, depreciation and amortization totaled 44.1 million euros.
TIP is an investor in Ruffini Partecipazioni, which controls listed skiwear maker Moncler SpA. Furla would also follow Brunello Cucinelli SpA, Salvatore Ferragamo SpA and Prada SpA in selling shares publicly in the last five years. Italian rivals Gianni Versace and Valentino, which are also considering IPOs, have downplayed the likelihood of share sales this year over concerns about how they’d perform. A combination of terror attacks, currency shifts and an economic slowdown in China are weighing on global luxury spending, wiping billions off the value of luxury stocks.