Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Kering and EssilorLuxottica are among the suitors for Marcolin, the Italian manufacturer of Tom Ford’s popular eyewear line, according to people briefed on the matter.
The Veneto-based company, whose private equity owners are seeking a valuation as high as €1.3bn, has held preliminary talks in recent weeks with groups including rival Safilo as well as the Franco-Italian eyewear group and French luxury conglomerate, the people said. US-based Marchon has also expressed an interest, according to one person involved in the talks.
However, the €1.3bn asking price has proved a sticking point between the company, in which PAI Partners owns a 83 per cent stake, and its potential acquirers, according to multiple people close to the talks.
The Paris-based private equity group, which first invested in family-owned Marcolin in 2012, has hired Goldman Sachs as advisers.
PAI, Marcolin, Kering, EssilorLuxottica and Safilo declined to comment. Goldman and Marchon did not immediately respond to a request for comment.
Marcolin, which is based in the north-eastern town of Longarone at the heart of Italy’s eyeglasses manufacturing district, secured a perpetual licensing agreement to produce Tom Ford’s eyewear for €250mn last year. The Tom Ford trademark is currently owned by New York-based Estée Lauder and its fashion line is run by the Ermenegildo Zegna Group.
The eyewear group also has agreements with brands such as Pucci, Zegna and Max&Co, and also recently signed a licensing deal with luxury shoemaker Christian Louboutin.
Bankers and analysts say the lucrative Tom Ford licensing agreement is attractive for potential suitors although it does not justify paying upwards of €1bn for a group that has complex industrial operations and would be hard to integrate.
Kering, which has a growing eyewear division, EssilorLuxottica, the world’s largest eyewear manufacturer, Safilo and Marchon have all looked at Marcolin and view the Italian asset as an opportunistic add-on, according to several people with knowledge of the situation.
However, none of Kering, Essilor or Safilo were willing to “overspend” on it, said three of the people. An acquisition of Marcolin could also encounter significant regulatory hurdles given all are large players in the eyewear sector.
People close to the talks said EssilorLuxottica would be the best fit for Marcolin. Marchon and Safilo are considered the least likely buyers, with Marchon comparatively smaller than the other companies and Safilo having experienced a recent weaker financial performance.
Private equity buyers had so far shunned the sale process as they considered Marcolin too expensive at the current price expectations set by PAI Partners, said people briefed about the matter. However, they could make a comeback if Marcolin failed to reach a deal with strategic buyers.
Marcolin’s revenues grew 3 per cent to €421.6mn in the first nine months of 2023. Its adjusted core profit rose 28 per cent to €64.6mn. The company will release its full-year results at the end of the month.
