(NEW YORK) Barcelona-based fashion chain Desigual is getting a major cash infusion from French investment company Eurozeo. The rapidly expanding brand is getting $396.4 million from Eurozeo, in exchange for 10 percent of Desigual’s share capital. The deal puts the Spanish company’s value at $3.72 billion. It’s Eurozero’s latest fashion investment following its 2011 purchase of a 45 percent stake in Moncler, which went public this past December.
“Desigual is a positive brand with unique products that are affordable and for everyone,” Manel Jadraque, CEO of Desigual, told The Daily. “Eurozeo fully shares our vision and will be an ambitious and constructive partner to accelerate the development of the company.” While this is Eurozeo’s first investment in a Spanish business, it should come as no surprise that the French investment firm would take interest in the brand, which has proven popular on French turf. “Spain, of course, is the first market. It accounts for 22 percent of total sales,” said Jadraque. “But France accounts for 21 percent of total sales.”
While the U.S. was the brand’s first foray into a market outside of Europe, the new investment will allow Desigual to expand into Asia and South America and will help further its rollout of stores throughout Europe. In 2013, Desigual opened 89 new mono-brand stores and sold approximately 26 million garments. Desigual currently operates 405 stores in 19 countries; the label is available in 109 countries worldwide thanks to its wholesale business.