Investcorp ends talks with fashion designer Cavalli

Updated 28 June 2014
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Investcorp ends talks with fashion designer Cavalli

LONDON: Gulf private equity firm Investcorp has ended talks to acquire a majority stake in the Italian fashion house Roberto Cavalli, several sources familiar with the deal said.
The 73-year-old designer was hoping to receive an offer from Investcorp by a June 30 deadline but the two could not agree on price, with the fashion house wanting up to 450 million euros ($611.53 million) for the stake, said two sources close to the deal.
Both Cavalli and Investcorp declined to comment.
Price expectations were based on a multiple of 18 times earnings before interest, tax, depreciation and amortization (EBITDA) of 25 million euros.
Cavalli approached Bahrain-based Investcorp in May after negotiations with London-based buyout firm Permira stalled earlier this year over valuation disagreements, the sources said.


Philips to close its UK factory in 2020, with loss of 400 jobs

Updated 17 January 2019
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Philips to close its UK factory in 2020, with loss of 400 jobs

AMSTERDAM/LONDON: Dutch health technology company Philips said on Thursday it planned to close its only factory in Britain in 2020, with the loss of around 400 jobs, the latest firm to move manufacturing jobs out of Britain.
The move is part of a push by Philips to reduce its large manufacturing sites worldwide to 30 from 50, and a spokesman said the decision had no direct link with Britain’s decision to leave the European Union.
However, the company said in a statement that it had to “pro-actively mitigate the potential impact of various ongoing geopolitical challenges, including uncertainties and possible obstructions that may affect its manufacturing operations.”
The factory in Glemsford, Suffolk, produces babycare products, mainly for export to other European countries. Almost all its activities will move to Philips’ plant in Drachten, the Netherlands, which already employs around 2,000 workers.
“We have announced the proposal after careful consideration, and over the next period, we will work closely with the impacted colleagues on next steps,” said Neil Mesher, CEO of Philips UK & Ireland.
“The UK is an important market for us, and we will continue to invest in our commercial organization and innovation programs in the country.”
Once a sprawling conglomerate, Philips has transformed itself into a health technology specialist in recent years, shedding its consumer electronics and lighting divisions.
The firm has previously warned that Brexit would put Britain’s status as a manufacturing hub at risk.
Chief Executive Frans van Houten last year said that without a customs union — which has been ruled out by Prime Minister Theresa May — Philips would have to rethink its manufacturing footprint.
Britain is set to leave the EU on March 29, and politicians are at an impasse over how to do so after lawmakers overwhelmingly rejected May’s proposed withdrawal agreement on Tuesday.
Other firms have moved jobs out of Britain in recent weeks, sparking alarm among lawmakers that Brexit is impacting corporate decision-making.
Jaguar Land Rover has slashed UK jobs — mainly due to lower Chinese demand and a slump in European diesel sales — while Ford has said it will slash thousands of jobs as part of its turnaround plan.
While both decisions were driven by factors other than Brexit, each firm has also been vocal in warning of the risks of no-deal Brexit, where Britain leaves abruptly in March without a transition period.