Italy's Miroglio goes upmarket with Trussardi buy

MILAN (Reuters) -Italian fashion group Miroglio said on Tuesday it has completed its acquisition of Trussardi, bailing out the century-old brand which last year sought protection from creditors.

Family-owned Miroglio paid 35 million euros ($38.28 million) for the assets, a source close to the company told Reuters.

Under the terms of the agreement, Miroglio acquired 15 Trussardi shops in Italy, and the historical archive and licensing rights of the fashion house founded in 1911 that sports a greyhound on its emblem. It did not disclose financial details of the deal.

Miroglio, whose portfolio already includes nine women's clothing brands such as Elena Miro and Motivi, said Trussardi would remain an independent brand and allow Miroglio to step into the premium segment.

The acquisition will also allow Miroglio to expand into men's clothing and the leather goods sector, it said.

CEO Alberto Racca, in a statement, called the deal "a key step in our strategy of growth and portfolio diversification".

Piedmont-based Miroglio said it aimed to relaunch Trussardi, which was founded in the town of Bergamo, near Milan, by adopting a growth strategy with a focus on Italy, eastern Europe and the Middle East.

Corriere della Sera daily reported last week that Palazzo Trussardi, a historic building next to Milan's La Scala opera theatre that Trussardi acquired in 1996, would be returned to the family.

It said they may rent it out, with France's LVMH among parties potentially interested.

Italian turnaround fund Quattro R bought the majority of Trussardi in 2019, injecting 50 million euros, and tried to relaunch the brand.

Miroglio is based in Alba, the Piedmont town that is also home to Nutella maker Ferrero.

Miroglio has 1,100 single brand stores, mainly in Italy but also in Turkey and the Middle East, and generated revenue of just over 500 million euros last year and a core profit of more than 30 million euros.

($1 = 0.9142 euros)

(Reporting by Elisa Anzolin; Editing by Valentina Za, Jan Harvey and Susan Fenton)