FOR IMMEDIATE RELEASE
Coraline Acquires Operations of Frette, Italy's Premier Luxury Fabric and Linen Company
MILAN, ITALY and SAN FRANCISCO, CA-- December 1, 2005 -- Frette S.p.A. ("Frette") and Coraline S.p.A. ("Coraline") today announced that Coraline, a wholly owned company of San Francisco based private equity firm JH Partners, has acquired Frette's operations and international subsidiaries. Frette is an Italian retail and wholesale company that markets luxury fabrics and linens to individuals and hospitality businesses around the world. Previously, Frette was owned by Fin.Part Group.
The transaction follows an earlier lease and licensing agreement between Coraline and Frette which went into effect on December 16, 2004. Today's transaction will allow Coraline to further develop the business and distribution of Frette products with exclusive rights to Frette's trademark. The agreement also contains a provision that will allow Coraline the option to acquire the Frette trademark.
John Hansen, Chairman of the Board of Coraline S.p.A. said: "We are pleased to complete this transaction. This agreement will help ensure the future success of Frette and enhance the reputation of the brand for luxury products in high growth markets throughout the world."
"In addition to financial support, JH Partners has demonstrated a firm commitment over the past year to Frette and its employees around the world," added Hansen. "This important acquisition will strengthen Frette's operations, and enable the company to expand its distribution channels to new markets, offering a significant growth opportunity for Frette and its investors."
JH Partners was advised by the UK private bank AdviCorp.
About Frette
Over the course of 150 years of operations, Frette has become a global leader in the home and hospitality textile markets throughout the world. Frette S.p.A. was previously owned by Fin.Part Group, a holding company of Fin.Part S.p.A. which declared bankruptcy in October of 2005.
About Coraline and JH Partners LLC
Coraline was formed expressely for this transaction almost a year ago, and it is controlled by JH Partners. JH Partners is a San Francisco based private equity firm focused on investments in growth-oriented middle market consumer products and services companies. The firm distinguishes itself among private equity firms in that each of its principals has senior-level operating experience building middle-market consumer related businesses. JH Partners has been instrumental in aiding the growth of powerful consumer brands, including Peet's Coffee & Tea, Bare Escentuals, Performance Bicycle Shop, Bell Helmets, and Design Within Reach, among others. Additional information may be found at www.jhpartners.com.
Contact:
Coraline
Image Building
+39 02 890 11 300
Mara Baldessari
+39 335 124 5184 - m.baldessari@imagebuilding.it
Francesca Valagussa
+39 335 184 9341 - f.valagussa@imagebuilding.it
Jeff Hansen
JH Partners LLC
415-364-0308
Dan Hilley
Abernathy MacGregor Group
213-630-6550
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