Monday, February 17, 2020

Carlyle Flips Golden Goose

The Carlyle Group sold Golden Goose Deluxe Brand to Permira, a fellow private equity underwriter (PEU).  As a result music artist Taylor Swift will lose leverage in her fight with Carlyle affiliate Ithaca Holdings which purchased Big Machine, the holder of Swift's past music rights.  Swift could have burned her GG sneakers in protest, but did not.

Carlyle bought Golden Goose in 2017 for roughly €400 million.  It sold Golden Goose for €1.3 billion.  Under Carlyle ownership Golden Goose revenue rose from €140 million to €260 million.  The deal priced at 14 times 2019 earnings.

Those numbers don't warrant a 225% valuation increase.  As Taylor Swift helped make Golden Goose sneakers cool, surely Carlyle will give her a cut.

Also for sale is Carlyle affiliate Twinset