Regain is one of the finest men’s footwear companies in Italy, and it is based in the Marche region. It produces over 70,000 pairs of shoes a year and employs approximately 50 people.
This acquisition is an important step in Gucci Group’s strategy to build its already strong and profitable presence in the footwear business. In fiscal year 2000, Gucci Group’s revenues in this category were over $240 million, approximately 11% of total sales.
Together with Regain, Gucci plans to set up a state-of-the art men’s shoes modeling and prototyping facility for the Group’s brands.
This strategy of vertical integration is designed to bring in-house important expertise for products at the top end of the market and to allow tighter control over product quality.
Details of the financial terms of the acquisition are not disclosed. However, Gucci Group notes that the impact on its financial condition and near-term earnings per share is not expected to be material. The closing of the transaction is expected to occur in September 2001.
