MILAN — Following weeks of market speculation, industry sources say a deal between Gruppo Coin and perfumery chain Limoni is imminent.
Gruppo Coin — the Italian retail and cosmetics chain that owns the Coin, OVS and Upim department stores, as well as concept store Excelsior — is set to acquire the struggling perfumery chain, which counts more than 400 stores throughout Italy and is controlled by equity fund Bridgepoint.
A source here said negotiations are under way and will be finalized within the next few days. Another suggested that there had been a delay in dealings after news broke earlier this month that Limoni’s former president, Piofrancesco Borghetti, and former chief executive officer and financial officer, Nazzareno Brandoni, were being sought for embezzlement, tax evasion and falsely declaring bankruptcy. Limoni is currently 400 million euros, or $502 million at current exchange rates, in debt, and the source said another private equity fund, Orlando, had stepped up to the plate alongside Bridgepoint in an attempt to halt Gruppo Coin’s acquisition.
You May Also Like
Italian financial daily, Finanza & Mercati reported that a proposal was being evaluated Monday by Limoni shareholders. If the deal goes through, Gruppo Coin would shake up the perfumery chain’s retail strategy, focusing a limited number of stores on high-end products, and the rest on an intermediate price category, the report said.
Gruppo Coin declined to comment on the news, and a representative from Limoni could not be reached Monday evening.