Blackstone Buys 20 Percent Stake in Versace

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Private equity giant Blackstone Group has purchased a 20 percent stake in fashion house Versace by investing €210 million ($290 million). 

Blackstone will inject €150 million of fresh capital into Versace and acquire €60 million in stock, according to a company announcement. 

The deal implies a total enterprise value of €1 billion for Versace. The Versace family will remain vital to the company, with Ms. Allegra Versace Beck, Ms. Donatella Versace and Mr. Santo Versace all playing important roles. 

The investment will assist Versace in preparing for a long-planned public listing in the next three to five years, CEO Gian Giacomo Ferraris told the Associated Press. 

The company struggled for years after the death of founder Gianni Versace in 1997. It returned to profit in 2011. 

The fashion house will use the capital to open more Versace stores, as well as expand its other brands, including Versus and accessories, and enhance its online business, the company states. 

Versace will release the results for 2013 at the end of March, where it expects to announce an 18 percent increase in revenues to almost €480 million and an increase of more than 50 percent in EBITDA to at least €69 million.