- Goldman Sachs, JPMorgan, and UBS are arranging €800–900 million of buyout debt for HSG’s acquisition of Golden Goose at an enterprise value of about €2.5 billion including debt.
- Golden Goose has roughly doubled revenue since 2020 to ~€655 million in 2024 and generated ~€227 million of adjusted EBITDA.
- Permira will partially exit but keep a minority stake, while Temasek will take a minority alongside HSG and management remains led by CEO Silvio Campara with Marco Bizzarri as non-executive chairman.
- The deal leans on leverage and a delayed IPO backdrop as Golden Goose targets international expansion, especially in Asia, and more directly operated retail while preserving its Made-in-Italy brand.
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The acquisition of Golden Goose by HSG (formerly Sequoia Capital China) marks a significant leveraged buyout in the luxury-fashion sector. The agreed enterprise valuation, at ~€2.5 billion including debt, implies a multiple of about 10× core profit (adjusted EBITDA) as forecast for 2025. That suggests both confidence in continued growth and pressure for strong post-deal performance.
The planned debt financing of €800-900 million, to be led by Goldman, JPMorgan, and UBS, is sizable relative to Golden Goose’s EBITDA of ~€227 million. With a debt-to-EBITDA ratio likely exceeding 3x (just for the new deal), Golden Goose’s leverage could be significant once existing debt is considered. That raises risk on interest cost exposure, particularly given floating-rate notes in what may be a rising-rate environment.
From the equity perspective, this is a classic PE-backed recap / ownership transition: Permira captures substantial value while retaining exposure via minority share; new capital partners include Temasek. Leadership continuity (Campara, Bizzarri) and brand identity preservation point to a growth play rather than restructuring. The push for expansion into Asia, and the shift toward more directly-operated retail stores and DTC channels, suggests revenue diversification and margin focus.
Risks include over-leveraging, macroeconomic headwinds (weak consumer demand in luxury, currency risks, interest rate cycles), execution risk in scaling international operations, and maintaining brand cachet especially with premium consumers. Also, the delayed IPO plans signal exit timing uncertainty, which could affect returns if capital markets deteriorate further. Open questions remain on covenants of the debt, the actual cost of financing (coupon spread), and how much of Golden Goose’s existing debt is being refinanced or carried forward.
Supporting Notes
- The buyout debt being arranged is expected to be €800-900 million, led by Goldman, JPMorgan, and UBS.
- Golden Goose’s valuation in the transaction is slightly over €2.5 billion including debt.
- Revenue increased from ~€266 million in FY 2020 to ~€655 million in FY 2024; adjusted EBITDA was ~€227 million in FY 2024.
- Leadership structure: Silvio Campara remains CEO; Marco Bizzarri is becoming non-executive chairman.
- New ownership: HSG acquiring majority; Temasek taking minority stake; Permira retaining a minority.
- Debt financing likely to take the form of high-yield bonds or floating-rate notes, mirroring Golden Goose’s prior debt structure.
- IPO plans in 2024 were delayed due to unfavorable market conditions.