Balmain, In the Focus of Qatari Investors

Qatari investment group Mayhoola for Investments could be close to acquire the French luxury group Balmain for more than €500 million.

Leeson. 07/04/2016

According to the French newspaper Les Echos, Balmain is for sale after nearly 70 years of independence. Now it would has at least three interested groups: one Chinese, one American and the favorite, Qatar´s Mayhoola for Investments, which already has put on the table an offer for more than €500 million.

Balmain 2
Balmain SS 16. Click to buy

If the purchase is completed successfully, it will be a new incursion of Arab capital in European luxury industry. Mayhoola, which is the investment arm of the Qatari royal family, already owns the Italian group Valentino, department store Harrod’s (UK), Printemps (France) and has stakes in companies such as LVMH and Tiffany, to just name two examples.

Balmain 3
Balmain SS 16. Click to buy

According to the information, the current owner of Balmain, Alain Hivelin, would have to choose one of the three candidates before this Thursday, April 7th. The sale comes at the right time. Since 2011, when its current creative director, Olivier Rousteing, joined, the results have soared. The company has focused on two aspects that have yielded the expected results. In one side it is firmly committed to Asia, which has become its main source of income. On the other hand, it has grown through franchising formula, which has allowed it to grow while keeping costs under control.

Balmain 4
Balmain. Click to buy

Regarding the price, which is not confirmed but could be around €505 million, would be approximately 16 times its sales, which is certainly a high level for a company of its size. Obviously, the Qatari fund is aware that it can take advantage of synergies with other holdings and that would allow him to expand the brand and boost its profit


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