Permira reduces stake in Hugo Boss for fifth time in two years

Chris Papadopoullos
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Hugo Boss sells highend fashion goods
Private equity firm Permira is cutting its stake in luxury fashion retailer Hugo Boss, it said last night.

Red and Black – which is 60 per cent owned by Permira – will reduce its holding in the German fashion retailer from 32 per cent to 12 per cent.

It means Permira’s stake in Hugo Boss falls to just over seven per cent.

It marks the fifth time Permira has shrunk its stake in Hugo Boss in the last two years, with Red and Black having reduced its holdings to 32 per cent from 39 per cent in December.

Red and Black will sell at least 7.35m shares – a deal worth €806m (£599m) at the luxury fashion retailer’s current share price.

The share sell-off will be joined by separate share sales to PFC and Zignago Holding – entities of previous owners the Marzotto family.

Red and Black took a €5.3bn euro stake in Hugo Boss eight years ago and appointed Claus-Dietrich Lahrs as chief executive. The retailer’s share price has increased four-fold since then.

Red and Black has also agreed to wait for at least another 90 day period before announcing any further share sales.

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