Shocking News! Dainese Sold for EUR1.00
The iconic brand Dainese has been sold for a symbolic EUR1 (1 Euro), after accruing a mountain of debt of around EUR300 million.
The sale was orchestrated by London-based funds Arcmont Asset Management and HPS Investment Partners (recently acquired by BlackRock), who took over from the Carlyle invesment fund. Carlyle, on the other hand, had acquired Dainese from Ivestcorp for EUR630 million in 2022.
The shocking news was reported by the Sport E Finanza magazine. However, Dainese themselves have not posted such news, and neither did Arcmont and HPS.
The Dainese brand had been struggling with debt after posting three consecutive years of losses, culminating in a EUR120 million deficit last year. That lacklustre performance saw its debt soar to EUR300 million over an EBITDA (earnings before interest, taxes, depreciation and amortization) of EUR20 million, which translates to a debt:EBITDA ratio of 15:1.
The new owners have stated their intention clearly: to strengthen Dainese’s financial structure and improve its flexibility after facing market challenges. However, there is yet news on the employees, suppliers, and customers of Dainese.
Only time will tell what the future holds for Dainese.
Source: Sport E Finanza
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