Background 

  • Garmont International (Garmont), headquartered in Vedelago (Treviso), is a leading Italian player in the outdoor and tactical footwear market
  • Garmont operates in two main business segments:
    • Outdoor (56% of 2019 annual revenues): design, production and distribution of footwear for various outdoor activities, such as hiking, mountaineering, trekking, etc.
    • Tactical (44% of 2019 annual revenues): design, production and distribution of footwear for military professionals and passionate people
  • Garmont has a global distribution footprint, covering more than 40 countries
    In July 2020, Garmont was approached by Riello Investimenti Partners SGR (Riello Investimenti) an asset management company
  • Riello Investimenti was interested in enhancing and developing of Garmont and help to grow its international presence 

Process

  • DC Advisory (DC) was engaged by Garmont to act as financial advisor to provide sell-side M&A advice on its sale to Riello Investimenti
  • DC provided comprehensive advice throughout the sale process including:
    • process strategy and tactics;
    • due diligence coordination;
    • deal structuring;
    • financial modelling and valuation;
    • support in negotiations; and
    • advice on transaction documentation

Outcome

  • Following a detailed due diligence process, the Sales & Purchase Agreement was signed on March 3, 2021 for Riello Investimenti to acquire a 65% stake of Garmont
  • The transaction closed on April 8 2021
  • Riello Investimenti will support Garmont’s existing management in the growth of the company