Italian clothing and accessories brand Salvatore Ferragamo quelled speculation of a buyout. Chief Executive Officer Michele Norsa told Bloomberg that he saw no reason to sell as the firm had resources for expansion. Growth had been robust in the Chinese and North American markets, Norsa added.
In July, Equita Sim SpA analysts had said that Ferragamo could be targeted for acquisition by cash-rich firms looking to grow. Chief Executive Officer Milton Pedraza of the Luxury Institute, a research firm in New York, also said there would be increased buyout activities in the luxury sector. He said this was due to smaller companies looking for buyers instead of turning to lenders for their capital needs.
Norsa also said Ferragamo's IPO in 2011 gave the Ferragamo family the financial leeway it needed to grow the brand. Now, the CEO said the Italian fashion firm enjoys a free cash flow that is greater than what it had initially expected. Norsa quipped, "If you become big enough you can survive alone."
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