Versace is in advanced discussions to take on the Blackstone Group as a minority investor, a person briefed on the matter said on Wednesday, in the latest sign that the finance industry’s interest in high fashion shows few signs of abating.
Blackstone, which beat out a number of rival investment firms to claim exclusive negotiating rights, is contemplating buying a roughly 20 percent stake in the company at a valuation of about 1 billion euros, or $1.37 billion.
A deal could be announced later this week, this person added, cautioning that talks could still fall apart.
Long known for its decadent, flesh-baring style, Versace has long been one of the best-known presences on the runway. But the company has been eclipsed by rivals that have tapped outside investors to fuel their global expansion. Fellow high-fashion house Prada carried a market valuation of nearly $20 billion as of Wednesday, for instance, while Michael Kors was valued slightly higher.
Versace has made strides in recovering from the financial crisis, thanks in part to efforts led by chief executive Gian Giacomo Ferraris. Mr. Ferraris has said publicly that the company plans to eventually list on an exchange.
News of the talks with Blackstone was reported earlier by The Financial Times.
