sicNet has announced the signing of an agreement to allow Permira, a global private equity firm, to acquire a stake in K-Way, which is currently wholly owned by the publicly listed apparel company on Euronext Milan.
Permira acquires 40% of BasicNet's K-Way
Under the terms of the deal, BasicNet will retain approximately 60% ownership of K-Way, while Permira, through its Permira Growth Opportunities II fund, will acquire around 40%. The transaction involves the establishment of a new holding company (TopCo), which will be jointly owned by BasicNet, Permira, and key managers from K-Way. Additionally, two other companies will be created: MidCo, directly held by TopCo, and BidCo, which will hold 100% of K-Way’s equity. Following the completion of the transaction, BidCo and K-Way will be merged.
Further deal details
Subject to standard adjustments based on the final calculation of net financial position and net working capital at closing, the expected consideration at the completion of the deal is projected to be between €180 million and €190 million. As part of the agreement, BasicNet will provide K-Way with a vendor loan of €65 million.
BasicNet anticipates that the transaction will be finalized in the first quarter of 2025.
