Change Capital Partners acquires majority stake in Frette
Private equity fund Change Capital Partners has acquired a majority stake in Frette, an Italian luxury linen and home furnishings business.
Change Capital Partners will make a significant investment into the company.
Frette’s existing owner, JH Partners, a San Francisco-based consumer focused private equity firm, will retain a minority stake in the business.
Founded in 1860, the company has supplied high quality linens to aristocratic families throughout Europe as well as the Vatican. Frette has 15 directly owned boutiques around the world.
Frette had consolidated sales of circa EUR90m in 2013 and it sells through a combination of directly operated stores, wholesale accounts and to hotels via the hospitality channel.
Change Capital Partners estimates the global luxury bed linen market to be worth over EUR1.2 billion and expects it to benefit from the continued growth in customer demand from emerging markets.
Steve Petrow, partner at Change Capital Partners, says: “We are delighted to be able to make a significant investment in Frette. The company has genuine heritage, deep expertise and the specific advantage of spanning both consumer and hospitality sectors. With our strong track record of investing and growing landmark consumer and luxury businesses we are excited by the prospect of taking Frette to the next level.”
Andrea Warden, chief executive of Frette, says: “As the market continues to evolve there are exciting opportunities ahead for Frette. With the experience, strategic direction and active support of Change Capital Partners, we look forward to entering a new phase of growth.”
Steve Baus, partner at JH Partners, says: “We would like to extend a warm welcome to Change Capital Partners, who will be fundamental to providing the company with the necessary support and resources to build on its success to date. We are delighted to remain involved in Frette, which we believe has an exciting future ahead of it.”
This transaction marks the sixth investment of the Firm’s second fund and the 13th overall. Italy is a key market for Change Capital Partners and the team has several native Italian investment professionals.
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