Blackstone Group is buying a stake in fashion house Gianni Versace SPA.
The New York investment firm is injecting 150 million (about U.S. $206 million) in capital, and grabbing about $82 million in stock, which works out to a 20 percent stake in the retailer.
The deal values Versace as a whole at $1.4 billion. Blackstone will also gain a seat on the retailer's board.
Milan-based Versace was founded in 1978 by Gianni Versace, who ran the line until his murder in 1997. After his death, his brother Santo Versace and Jorge Saud served as the new CEOs of the group, while Gianni's sister, Donatella Versace, became the new head of design. The brand designed stage costumes for Elton John's 1992 world tour, and is designing Beyoncé's costumes for her 2014 world tour.
Aside from the Versace line, the group owns Atelier Versace, Versace Couture, Versace Sports, Versace Home Collection, Versace Jeans Couture, Young Versace and Versus. The brands make high-end apparel, accessories and fragrances for men and women.
The investment should allow Versace to invest in its retail store network in existing and emerging markets, according to a Blackstone statement. The capital will also allow the group to develop its brand portfolio, with particular focus on Versus, a line started by Donatella that creates capsule collections, which are mini collections with limited quantities, sometimes as collaborations with another designer.
Versace plans to release 2013 financial results at the end of March, and anticipates announcing revenues are up about 18 percent.
Recent retail and consumer goods deals include Falconhead Capital LLC's purchase of NYDJ Apparel LLC, a denim line, and Bain Capital's acquisition of a majority stake in outerwear company Canada Goose.
In December, Jones Group Inc., which owns Nine West and Jones New York, announced it was selling itself to private equity firm Sycamore Partners LLCfor $1.2 billion. Also in December, private equity firm Leonard Green & Partners LP agreed to buy Lucky Brand Jeans from Fifth & Pacific Cos Inc. (NYSE: FNP) for $225 million.