A source familiar with the matter told Reuters that Investcorp is gearing up to sell Italian motorcycle clothing brand Dainese in a deal that could value the 49 year firm, favoured by motorcycle racer Valentino Rossi, at about 750 million euros.
The Bahrain-based private equity firm, known for its motorcycling racing wear, has hired Lazard to start a sales process at the beginning of 2022, according to a source who spoke on condition of anonymity.
In 2014, Investcorp, which took over Dainese for 130 million euros, intends to cash out for about 750 million euro $848 million, and could make almost six times its money from the sale.
Investcorp, with $37.6 billion of assets under management as of June 30, has clinched more than eight acquisitions this year through its flagship private equity fund and technology fund, which focuses on established European tech businesses.
In 2014 its co-Chief Executive Hazem Ben-Gacem led the Dainese acquisition and until 2018 acted as vice chairman of the company's board.
Dainese has tripled its core earnings and diversified its product range, which includes winter sports, biking and horse riding, under the ownership of Investcorp.
The company was founded in 1972 in the northeastern Italian town of Colceresa near Vicenza, and is a leading manufacturer of protective helmets for the motorcycle market through its AGV brand.
The source said that the Dainese fared well during the COVID 19 epidemic, as it benefited from increased interest in outdoor activities and wellbeing.
Lino Dainese, the founder of the company, has retained a minority stake in the business, has invented the D-Air air bag system, which detects a dangerous fall and deploys special airbags to protect motorcyclists.