BasicNet S p A : Announces Strategic Investment In K-Way from Permira

BasicNet and Permira, a global private equity firm, have entered into an agreement regarding Permira's acquisition of a significant minority stake in K-Way S.p.A., the entire share capital of which is currently owned by BasicNet.

BasicNet shall maintain approximately a 60% interest in K-Way and Permira - through Permira Growth Opportunities II - will come to hold approximately 40%.

Founded in 1965 in Paris, K-Way has firmly established itself as a fast-growing, outdoor-inspired lifestyle brand with a unique identity. The brand is the creator of the category-defining waterproof packable jacket, the "Claude", with its distinctive colourful zip and logo inspired by the French flag. Renowned for its signature windbreakers, lifestyle fashion and sportswear products, K-Way has cultivated a loyal following that resonates with its iconic, timeless and universal appeal.

K-Way's diverse customer base is drawn to its exceptional craftsmanship and innovative designs, which seamlessly blend functionality and style, setting new standards in the fashion industry. With a rich heritage rooted in craftsmanship, the company has solidified its strong brand reputation of creating premium products.

BasicNet has successfully elevated the K-Way brand over the past decade by revamping stores, enhancing the customer experience and improving the design and quality of products. Under the BasicNet ownership, K-Way has established itself as a leader in the outerwear market, leveraging the playful, colourful and inclusive characteristics of the brand.

In 2023, the Company achieved consolidated revenues (through direct sales, royalties and sourcing commissions) of 147.7 million euros and EBITDA of 44.7 million euros.

The transaction values K-Way at a IFRS 16 enterprise value of 505 million euros. Subject to standard final computation of Net Financial Position and Net Working Capital at closing, the anticipated cash payable to BasicNet on the date of completion of the transaction should be approximately between 180 and 190 million euros, of which 65 million euros being paid in the form of a vendor loan.

Marco Boglione, Chairman and Founder of BasicNet, said: "I consider this moment as crucial as only two others have been for BasicNet: the acquisition of Maglificio Calzificio Torinese in 1994 and the stock exchange listing in 1999. We worked hard for K-Way to be in this position and we are glad to welcome onboard Permira, one of the world's most prestigious and successful investors in our industry."

Alessandro and Lorenzo Boglione, Executive Vice Presidents of BasicNet and CEOs of K-Way, commented: "We welcome the Permira team on board as we embark on the next phase of K-Way's exciting growth journey. Over the past years, we have made significant strides in expanding the brand and enhancing its product offering. Permira's partnership will provide K-Way with the necessary resources, expertise and global network to accelerate its expansion plans and solidify its position as a leading player in the premium outerwear market. We look forward to working closely with Permira to capitalise on new opportunities and drive sustainable growth for the brand while maintaining its heritage and legacy."

Francesco Pascalizi, Partner and Head of Italy at Permira, said: "K-Way is a brand we truly admire, and we are really excited about the future prospects of the brand and partnering with BasicNet and the Boglione family."

Sebastien Floch, Principal and Head of France at Permira, commented: "We are thrilled to partner with the Boglione family and the team at K-Way. We have followed the business for a number of years and have found that K-Way is a brand with real scarcity value which encompasses everything the Permira Consumer team loves to back: an iconic brand and product, strong heritage and DNA, universal customer appeal and distinctive positioning. We look forward to bringing our experience and resources to the table to support K-Way's continued success and its global expansion plans."

BasicNet has been advised by Mediobanca as exclusive financial advisor, Pavesio e Associati - with Negri-Clementi as legal firm, and STS