According to Bloomberg's latest news, the Swiss luxury brand Bally under European investment group JAB Holding Co. has launched a sale process, with insiders predicting a transaction price of approximately $700 million. Previously held by American private equity fund TPG, Bally was acquired by JAB for $650 million in 2008, with annual sales exceeding $411 million at the time.





It is reported that potential buyers have received relevant information from JAB and have a preliminary plan to provide a guiding quotation in mid September. Analysts predict that Bally's potential buyers may be Italian companies or investors from China. As of now, JAB has not responded to any news regarding the sale of Bally.





Bally was founded in 1851 and is a Swiss luxury brand that started with shoemaking. With its rigorous manufacturing techniques and exquisite design, it has gradually grown into a highly trustworthy luxury brand. It entered the Chinese market in 1986 and was also the first luxury brand to enter China.





In April of this year, JAB announced for the first time that it would focus on the daily consumer goods industry such as coffee and food in the future, planning to spin off its fashion business and sell its two luxury brands. After several rounds of bidding from Coach, Michael Kors, and Chinese buyers, Michael Kors purchased the British luxury shoe brand Jimmy Choo from JAB for $1.2 billion on July 25th.





Analysis suggests that JAB's decision to exit the luxury fashion industry is the correct choice, as its strength mainly lies in the consumer goods industry. Before JAB's renaming, it was Labelux, which had invested in fashion brand Derek Lam, jewelry brand Solange Azagury Partridge, and luxury leather accessory brand Zagliani. At present, the first two brands have been "redeemed", and after Zagliani ceased production, its workshop in Milan was used by Bally.





It is worth noting that Bally CEO Fr é d é ric de Narp stated in an exclusive interview with Fashion Headlines that the brand has reached an agreement with JAB that it is a good time to sell Bally to investors willing to invest more energy in the brand. According to data, the annual sales growth of the brand in fiscal 2016 was 4%, with a 100% increase in pre depreciation and amortization profit. Wholesale channel sales surged by 20%, with the tourism retail department responsible for airport duty-free stores experiencing the strongest growth. However, Fr é d é ric de Narp declined to disclose further specific figures, but stated that the brand's annual sales will enter the 1 billion euro club as soon as 2021.