The appetite for investing in affordable luxury consumer goods companies shows no signs of abating as Synova Capital completed its first investment acquiring The Lunan Group (TLG) business.
TLG is the name behind the Fiorelli and Modalu handbag and accessories brands.
Last week, Phoenix Equity Partners and Sirius Equity teamed up to buy affordable luxury retailer LK Bennett. Other recent deals in the affordable luxury sector include Graphite’s acquisition of shoe retailer Kurt Geiger and Exponent’s purchase of Radley, also a handbag brand.
Synova’s acquisition of TLG weighed in at an estimated £15-30m. Synova has been established by billionaire Poju Zabludowicz in 2007 to undertake buyouts with a value of between £10m and £50m.
Synova was joined by Brands Etc, the investment vehicle of the Gestetner brothers, on the deal.
Fiorelli has an estimated 15% market share of the UK branded handbag market and is sold by in excess of 500 independent retail outlets. International orders for the Fiorelli and Modalu brands are on target to achieve 400% year on year growth, said a statement for the firm.