Is Versace Worth A Billion?

Versace has received the highest bid so far for a minority stake in the company from the state-backed investment fund, Fondo Strategico Italiano (FSI). The bid values the company at €1.1 billion (£900,000,000), more than 16 times the company's earnings before interest, tax, depreciation and amortisation (EBITDA).

The House Of Versace

There are several bids from private equity firms on the table, a source close to the deal told the Financial Times, all of which are being considered. FSI is considered to have a relatively passive nature, which sources say would suit the Versace family's structure and focus better than a more hands-on private investor.

Donatella Versace is expected to meet with interested parties this week, with the first round of bidding tabled for before Christmas. Donatella holds 20 per cent of the company's shares, while her daughter Allegra Beck owns 50 per cent.