Investment fund Fortelus Capital has acquired Bruno Magli SpA for an undisclosed sum, marking a new chapter for the beleaguered footwear company. U.K.-based Fortelus said that it bought 100 percent of Bruno Magli from Bulgari SpA-backed equity fund Opera and its co-investors for an undisclosed sum.
Timothy Babich, who founded Fortelus late last year, said that he closed the deal to buy Bruno Magli last week. He emphasized that the "majority of the capital" Fortelus spent on the company will go directly into the Bruno Magli business rather than to the shoe company’s former shareholders.
"I think that part of [the attraction of the deal] was the history and the archives of all the designs. We think that there is a good base to build on," Babich said, adding that it’s premature to discuss specific strategic objectives for the brand. "We’ve identified some of the things that can help improve some aspects of the business."
Babich, a former executive at Connecticut-based Silverpoint Capital, said Fortelus is a turnaround fund with $300 million in capital. Bruno Magli, famed for its handmade men’s and women’s shoes, is the fund’s first purchase. He said that the fund is looking at a series of other potential investments in Europe.
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