LONDON: Gulf private equity firm Investcorp has ended talks to acquire a majority stake in the Italian fashion house Roberto Cavalli, several sources familiar with the deal said.
The 73-year-old designer was hoping to receive an offer from Investcorp by a June 30 deadline but the two could not agree on price, with the fashion house wanting up to 450 million euros ($611.53 million) for the stake, said two sources close to the deal.
Both Cavalli and Investcorp declined to comment.
Price expectations were based on a multiple of 18 times earnings before interest, tax, depreciation and amortization (EBITDA) of 25 million euros.
Cavalli approached Bahrain-based Investcorp in May after negotiations with London-based buyout firm Permira stalled earlier this year over valuation disagreements, the sources said.
Investcorp ends talks with fashion designer Cavalli
