Italian fashion group OTB eyes M&A as cash grows
MILAN, April 15 (Reuters) - Italian fashion group OTB is
planning to invest 200 million euros ($226 million) over the
next three years, potentially in acquiring other brands, after
boosting its financial strength in 2018, it said on Monday.
OTB - which stands for Only The Brave - owns a string of
street and upmarket European brands including Maison Margiela,
Marni, Viktor&Rolf and Paula Cademartori.
The company posted a drop in revenues and margins last year
but said its net financial position strengthened by 32 percent
to 111 million euros.
Its most famous label, denim maker Diesel, filed for Chapter
11 protection in the United States earlier this year.
Diesel's weak performance in Europe and North America last
year weighed on OTB's consolidated sales, which fell 3.2 percent
at constant exchange rates to 1.4 billion euros. All the other
brands posted a growing turnover, the company said.
Its core profit slipped 21 percent to 41.5 million euros.
Net equity stands at 885 million euros.
OTB Chief Executive Ubaldo Minelli said in a statement the
group had reorganised its business over the past year.
"Our net equity and current financial position will allow us
to continue to explore new opportunities", he added.
OTB has recently started negotiations with struggling
Italian luxury brand Cavalli, which filed for creditor
protection last month and is looking for new investors.
($1 = 0.8843 euros)
(Reporting by Claudia Cristoferi; Editing by Jan Harvey
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