Fruit of the Loom Negotiating to Sell European Luxury brands to Private Equity Firm

(BRK.A), (BRK.B)

Berkshire Hathaway’s Fruit of Loom is in negotiations to sell its European lingerie brands to a private equity firm.

In 2014, Fruit of the Loom began looking for a buyer for its European luxury lingerie brands.

According to the Financial Times, private equity group Perceva is in exclusive talks with Fruit of the Loom to purchase Variance, Lou Paris, Vanity Fair, BestForm, and Cherry Beach swimwear.

The lingerie brands were acquired by Fruit of the Loom in 2007 for $350 million from branded lifestyle apparel company VF Corporation . Fruit of the Loom has run them under the umbrella Vanity Fair Brands.

Perceva is interested in the brands because sales of luxury lingerie are strong in France, which leads the Euro-zone in per capita spending on women’s undergarments.

© 2015 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future performance.