Versace has released more details on its deal with Blackstone, the firm that in February became a minority investor in the family-owned company. As WWD reports, Blackstone is barred from selling its shares for the next five years -- right around the time that the fashion house is expected to IPO.
A rep for Versace has confirmed with us that Blackstone's investment of $208 million is taking place in two parts, with the first portion going through on April 10 and the second, an infusion of $55 million, scheduled to happen before June 20. In return, Blackstone will acquired $83.3 million in stock from GiVi Holding.
Even without Blackstone's cash, Versace's sales shot ahead in the first quarter of 2014, with its U.S. revenue up 32.2 percent.
Blackstone now has one seat on the board of GiVi Holding, which owns the fashion house, although it has no voting rights. Meanwhile, the Versace family has veto power over sales of Blackstone's shares if the buyer is a fashion producer or distributor. To further protect Versace's interests, Blackstone's board member cannot hold more than a 5 percent stake of another fashion company.
At this point, Donatella Versace and her daughter Allegra Versace Beck own 20 and 50 percent of the company, respectively, while Donatella's brother Santo Versace holds the remaining 30 percent.