Pronovias' owners increase capital injection in the company by 100 million euros
Bain Capital and MV Credit, the new proprietors of Pronovias, have successfully raised the capital injection in the bridal fashion company to 211 million euros, exceeding the initial projected figure by 100 million euros. This strategic move aims to effectively address the Spanish enterprise's existing debt and to execute its revitalisation plan.
According to the newspaper El Confidencial, this operation was executed through the entity Mermaid Bidco Limited, and was carried out in two phases. The initial phase took place on May 9, with an injection of 31 million euros, followed by the second phase on Tuesday, May 6, which witnessed an influx of 180 million euros. As a result of these financial maneuvers, the previous proprietor of Pronovias, BC Capital, has now divested itself completely from the fashion house's shareholding.
The bridal fashion company endured significant repercussions due to the Covid-19 pandemic and the consequential slowdown in the wedding industry. With the infusion of the 211 million euros, the company aims to refinance bridge loans, bolster its balance sheet, and improve its liquidity. This strategic initiative, as highlighted by the aforementioned source, intends to reduce the firm's existing debt by 70% to 125 million euros.
In parallel with the debt reduction efforts, Pronovias has set its sights on achieving sales of 200 million euros by 2025. To accomplish this ambitious goal, the company will expand its presence in the United States, strengthen its digitalisation efforts, and broaden the range of available brands in Europe.
The bridal fashion giant, which recorded revenues of 150 million euros in 2022, a figure similar to pre-pandemic levels, has recently established its new board of directors. Leading the company as CEO is Amandine Ohayon.
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