Italian investment group Quadrivio acquires Sessùn | kbnmart

Sessùn is an Italian brand. The French women’s ready-to-wear brand, located in the affordable luxury segment, has been acquired for around 70% by the Italian Quadrivio Group, an international investment firm active in private equity for over 25 years, through Made in Italy Fund II, the investment fund it manages in joint venture with the communications agency Pambianco. By 2024, the bohemian-style brand will achieve sales of over €70 million and an EBITDA of €10 million. By 2028, it expects to achieve sales of over €130 million, 60% of which will be generated internationally.

This is a major turning point for the brand founded in Marseille in 1996 by designer Emma François Grasset. Emma François Grasset had already opened its capital in 2017, but retained a majority stake of 57.6%. It acquired Experienced Capital Partners (ECP), the operating investment fund dedicated to luxury brands created in 2016 by former SMCP directors Frédéric Piossi, Elie Coppé and Emmanuel Pradier.

Experienced Capital sold its 42.4% stake through its ECP I fund to the Quadrivio Group. The institution also sold part of the capital it controlled, but it remains a shareholder of around 30% and maintains its role within the company, continuing to act as Managing Director and Technical Director of Sessùn.

This acquisition represents Quadrifo’s first international direct investment in the fashion sector. “This is our first large-scale operation in France,” says Alessandro Pinello, CEO of the Italian group, who confirms that he is already eyeing other acquisitions in France. The group, which was joined in 2023 by Philippe Franchet as managing partner, is also preparing to open an office in Paris.

“Sessùn is a leader in its sector and has a strong distribution in France and abroad, with a significant presence in Europe. The company is in an ideal position. It is a brand with the potential to expand globally. It needs to take a step forward in terms of size and acceleration internationally. With our network, we can certainly help it take a new step,” he says.

“For us, this is a very good deal with an excellent return, above the average return achieved by investment funds,” said Emmanuel Pradier, chairman of Experienced Capital, without disclosing the size of the deal.

“When we reached the end of 2017, Sessùn had sales of €20 million, and we helped it grow to €70 million with steady growth, with sales increasing by 20% year-on-year,” he continues, adding that “since January 1, it has grown by 13% on a like-for-like basis in a flat market, clearly taking market share from its competitors in the accessible luxury space.”

In particular, the fund has accelerated the internationalization of the brand “through direct openings in Spain, Germany and the United Kingdom in particular, and in Switzerland. International growth is set to increase by 38% per year between 2021 and 2024. We have also helped structure the management committee, which is now very strong, with five people. We believe that the company has proven itself in France. It has established the brand, and has put in place all the right processes to enable it to accelerate and get its foot directly on the international scene. Now it can continue to grow, and this is the right time to bring in a new partner,” says the investor.

As Sessùn celebrates its 30th anniversary next year, it can be proud of its track record. Its sales have more than tripled since 2017 and it can count on a network of more than 80 points of sale (more than 60% of total sales) in six countries, including thirty international stores – ten in Spain and five in the UK.

The brand generates 40% of its sales abroad (a figure that rises to 50% in the case of its online store alone). It is distributed through 400 retailers worldwide, from department stores to multi-brand boutiques (15% of its sales), as well as through its particularly profitable e-commerce site, where online sales represent a quarter of its total sales, ten points higher than the market average.

“It has many strengths: “First of all, it has a very privileged positioning, with its approach based on arts and craftsmanship, which gives it a real personality. It is a very sunny brand, like Emma François Grasset. It is an honest brand that offers a high-quality product that has long been anchored in an eco-responsible approach, with 70% of its materials being natural, for example. It also has a good balance between its different distribution channels. Finally, one of the keys to its success, in addition to its strong international presence, is its good value for money. Sessùn has always been careful to keep its prices affordable, something its competitors have not done,” notes Emmanuel Pradier, noting that the brand “has perfectly mastered the codes of social networks, with nearly 400,000 followers on Instagram.”

As Quadrifo Group explained, “the acquisition by the Made in Italy II Fund aims to strengthen the brand and double its sales through an international expansion plan, particularly in Europe, especially Italy, and the United States. Among the planned initiatives is a plan for new openings, with the aim of reaching a total of 130 points of sale and ensuring a global presence.”

“In August, Sessùn obtained B Corp certification, and in September it opened its new flagship store in Paris. The brand’s development levers also include strengthening the e-commerce channel and enhancing the value of the accessories segment,” concludes the group.

The Quadrivio Group acquired Sessùn through the Made in Italy Fund II it launched in 2023. This is the company’s third investment, having already acquired a minority stake in Autry sneakers and a 51% stake in affordable luxury knitwear brand Filippo De Laurentiis. In 2018, the company launched its first Made in Italy Fund to invest in Italian SMEs that excel in the lifestyle sector, i.e. fashion, food, beauty and design. Its portfolio includes Dondup and GCDS.