Investcorp has officially sold the Dainese group of brands to an American private equity firm for a reported EUR630 million (RM2.9 bil).
In a statement by the company dated 11 March 2022, Investcorp has reached an agreement on the sale of Dainese SpA to global investment firm the Carlyle Group.
The sale figure represents a nearly five times return that Investcorp spent when it purchased 80 per cent of Dainese SpA from founder Lino Dainese back in January 2015.
Under the Investcorp’s ownership, Dainese doubled its sales to EUR250 million. The Italian also evolved from product-focused business into a global standard for dynamic sport protection.
“Six years ago when we invested in Dainese, the founder Lino Dainese said he wanted a partner that shares his passion and ambition for his company.
“It’s satisfying to know that Investcorp have been that partner to Dainese, as under our leadership we facilitated EBITDA growth of more than five times and created a business well positioned for continued success.
“We will continue on our mission to support exceptional Italian brands in their journey to become world leaders. Gucci, Riva Boats and Dainese are just a few of Italy’s best that we had the honour to partner with and support – that mission shall continue at Investcorp,” said Hazem Ben-Gacem, Co-CEO at Investcorp.
Meanwhile, The Carlyle Group is looking to expand Dainese’s distriibution network by adding other brands into the group.
The new acquisition will also boost Dainese’s effort in increasing rider’s safety on and off the track typically in the airbag safety apparel market.
Rumours of Dainese being up for sale is circulating again.
The premier Italian brand is currently held by InvestCorp, and investment group from Bahrain. They are holding a controlling stake in Dainese S.p.A. and are looking to sell their shares, according to rumours.
It was also said that Investcorp have enlisted the assistance of asset management company Lazard. In turn, Lazard will begin looking for buyers of Investcorp’s 80% shares in Dainese.
Whether true or otherwise, time is ripe for Investcorp to cash in on their shares. The group has taken the brand to newer heights and higher profits since their takeover in 2014.
Prior to Investcorp’s involvement, Dainese’s turnover was € 117 million in 2013. It grew € 187.4 million in 2017, allaying initial fears of the brand being ruined by profit hunters. Employees increased from 609 to 757 in March 2018, too. The company earned € 30 million (earnings before interest, tax, depreciation and amortization) in 2018 alone and is expected to grow to € 35 million by the end of this year.
Consequently, the company could be evaluated at nearly half-a-billion Euros.
Founder Lino Dainese holds the remaining shares and continues to be the President, while Cristiano Silei took over as CEO from 2015.
Since then, Lino Dainese founded the D Airlab, dedicated to research on applying D-Air technology not only to motorcycle riders, but in other applications such as aerospace, worker safety, sailing and the elderly.
Dainese also continues to work with the Trauma Team at the Niguarda Ca’Granda Hospital in Milan as part of the Dainese Advanced Research Program. The program analyses the effects of motorcycle accidents in order to improve the design of protective gear.
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