BasicNet sells 40% stake in K-Way to Permira

BasicNet announced on Friday that private equity giant Permira has made a “strategic investment” in K-Way SpA. It has taken a “significant minority” stake in the waterproof outerwear brand. It had been 100% owned by BasicNet, which has retained a 60% majority holding in the business.

The transaction values K-Way at an IFRS 16 enterprise value of €505 million. The anticipated cash payable to BasicNet on the date of completion of the transaction should be between €180 million and €190 million with that including a sum of €65 million being paid in the form of a vendor loan.

The almost-60-year-old brand has a high profile in the buoyant outdoor market and is best known as the creator of the “category-defining” waterproof packable jacket, the Claude, with its distinctive colourful zip and logo inspired by the French flag. 

Its owner has spent the past decade elevating the brand by revamping its stores, enhancing the customer experience and improving the design and quality of products. 

In 2023, that resulted in consolidated revenues (through direct sales, royalties and sourcing commissions) of €147.7 million and EBITDA of €44.7 million.

Marco Boglione, Chairman and Founder of BasicNet, said he considers this deal “as crucial as only two others have been for BasicNet: the acquisition of Maglificio Calzificio Torinese in 1994 and the stock exchange listing in 1999. We worked hard for K-Way to be in this position and we are glad to welcome onboard Permira, one of the world’s most prestigious and successful investors in our industry.”

Alessandro and Lorenzo Boglione, executive VPs of BasicNet and CEOs of K-Way, added: “Over the past years, we have made significant strides in expanding the brand and enhancing its product offering. Permira’s partnership will provide K-Way with the necessary resources, expertise and global network to accelerate its expansion plans and solidify its position as a leading player in the premium outerwear market.”

Meanwhile Sebastien Floch, principal and head of France at Permira, said that the private equity firm has “followed the business for a number of years and [has] found that K-Way is a brand with real scarcity value which encompasses everything the Permira Consumer team loves to back: an iconic brand and product, strong heritage and DNA, universal customer appeal and distinctive positioning”.