The Pronovias bridal fashion group changes ownership. The company announced on Tuesday that its main shareholder, BC Partners, together with a vast majority of its senior and junior creditors have reached a binding agreement to recapitalize the group. "The operation will not only strengthen the Group's balance sheet, but will mean a significant injection of new funds that will allow the company to comply with its strategic plan," they commented.
As a result of the operation, they maintain, Pronovias will significantly reduce its debt, without specifying the amount at the moment. The remaining debt maturities will be extended to provide the group with the necessary margin to execute its business plan. "Pronovias will benefit from better financial conditions to boost its liquidity and support further reinvestment in the business," they added.
The operation entails a change in the ownership of the group, which will pass to its creditors. Pronovias' majority stake will be transferred to a consortium of investors led by Bain Capital and MV Credit. The process is expected to take place at the beginning of 2023. The group has not detailed the amount of the sale. "This consortium is committed to the long-term future of the group, and will allocate a significant volume of liquidity to finance its future development," they comment. The founder of Pronovias, Alberto Palatchi, sold the company to the British fund BC Partners for 550 million euros in 2017.
Although Pronovias was negatively affected by the COVID-19 pandemic, "it maintains its position as the leading global bridalwear brand and is on track to deliver strong double-digit sales growth in 2022, with revenue increasing year-on-year 40%", they emphasize.
"The group will now have greater strength and the necessary financial capacity to accelerate our business plan. Pronovias is the leading bridal fashion brand in the world, and we have all the necessary elements to continue shaping this industry as it reactivates after the pandemic," says Amandine Ohayon, CEO of Pronovias. "We are grateful for the support that BC Partners has given us over the past five years, including the operational and financial support that enabled us to meet the unique business challenges brought on by the pandemic," she stresses.
For his part, Sandro Patti, CEO of Bain Capital, highlighted its importance as a "financier of Pronovias for several years". "We know the business well. With its commitment to cutting-edge fashion, innovative designs, high-quality fabrics and personalized service, the company is well positioned to become the bridal brand of choice in the post-pandemic wedding boom" , holds.
The pandemic and the cancellation of weddings hit the Barcelona-based fashion company hard. In 2021, its sales were still 35% below 2019 levels and it lost 66.6 million euros, according to Bloomberg. This October Bain Capital already injected 15 million euros through a loan granted with a discount of up to 30%.
Also last year, the creditors agreed to refinance the 320 million financial liability in exchange for the Pronovias proprietary fund injecting 18 million.
At the end of 2021, Catiberia Acquisition Holdco, the company that brings together the entire Pronovias business, declared a debt of 270 million euros, of which 211 million were debt with credit institutions. BC Partners loaded Pronovias with a debt of 311 million to finance the purchase of the company in 2017.
