L Capital takes control of Dondup
L Capital has taken control of Dondup, now with a 91% stake in the high-end Italian denim brand. The investment arm of the French company LVMH acquired 40% of Dondup in 2010. Its Asian arm, L Capital Asia, meanwhile, has just acquired the 51% stake sold by founder and CEO of the label, Massimo Berloni, through his company Arcadia, the company announced in a statement.
Dondup was founded in 1999 in Fossombrone, Marche (central Italy), by Massimo Berloni, who remains the label’s president, and his wife, Manuela Mariotti, who serves as the label’s creative director.
The ready-to wear brand started out specializing in denim, focusing on the quality and wearability of its jeans, in addition to experimenting with materials and colors, before expanding its range to include a complete look for women, men and children.
The brand’s new CEO is Carlo Morfini, who has a great deal of experience in fashion and luxury, having worked for the likes of Marni and Tod's.
The details of the transaction have not been disclosed, but local media suggested 60 million euros. The company has announced its intention, meanwhile, to increase turnover by 35 million euros in the next three years, increasing from approximately 50 million euros in 2014 to 85 million by 2018, while increasing its business abroad from 30% to 50% of its total sales.
"The company is preparing to begin a new chapter in its history, pursuing development in international markets and the growth of its monobrand store network both in Italy and abroad," the company said in a statement.
Dondup, which is primarily present in central and northern Europe (Germany, Benelux, Scandinavia, Russia), intends to expand into France and the United Kingdom, as well as into Asia, with the support of L Capital Asia, and finally into the United States.
The brand has stores in Milan and Moscow. It intends to open five directly managed locations and twenty franchises within three years.
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