The legendary Italian motorcycle gear brand Dainese sold for the symbolic sum of €1 to its main creditors—London‑based Arcmont Asset Management and HPS Investment Partners—under a Dainese sale to creditors deal by private‑equity owner Carlyle Group. HPS has recently become part of BlackRock, the global asset manager.
The transfer serves as a debt‑equity restructuring move designed to salvage the embattled company amid a balance sheet weighed down by approximately €300 million in liabilities, around 15 times its EBITDA of €20 million. Over the last three years, Dainese posted heavy losses exacerbated by slumping Asian sales and a pandemic-era inventory glut, culminating in a €120 million net loss in 2024, including an €86 million goodwill impairment, and saw revenue slip as production and logistics costs climbed and demand waned in key markets like China.
Carlyle had acquired Dainese from Investcorp in March 2022 for a transaction valued at €630 million including debt, backed by a €285 million bond issue underwritten by HPS and Arcmont, plus a separate €52.5 million revolving credit facility arranged with major banks including UniCredit and Intesa Sanpaolo. But by the end of 2024, mounting losses rendered the capital structure unsustainable, and bond coupon payments due in June 2025 were deferred during negotiations with creditors.
In parallel, HPS and Arcmont injected €25 million of fresh private‑note financing to support working capital and help bridge liquidity needs while the takeover plan was formalized. On July 10, 2025, the Dainese board approved a new senior secured bond issue worth €25 million to back the group’s capital structure and subsidiaries.
According to Italian industry media, the deal was “in its final stages” by July 21, 2025. Reports indicate that Dainese’s founders, notably Lino Dainese, expressed surprise and disappointment at the outcome, even though he has had no operational involvement since selling the company in January 2015 to Investcorp, marking the end of his ownership after 42 years.
Dainese Sold: Why the €1 Price Tag?
The symbolic €1 sale price reflects the large net debt load, roughly ten‑fold the company’s underlying earnings. A debt-to-EBITDA ratio of about 15 times renders the entity financially distressed, so a nominal transfer to creditors allows them to convert debt into ownership, reset the balance sheet, and avoid formal default procedures.
Dainese has neither confirmed nor denied the move.
New Owners’ Intentions
Arcmont and HPS, now shareholders and creditors, aim to stabilize Dainese’s finances, improve operational flexibility, and reposition the firm for a turnaround. The fresh capital and new debt structure should provide breathing room to refine supply-chain efficiency, reduce working‑capital stress, and regain control over margins. According to company communications, the operations—staff, suppliers, customers—will continue without disruption during the restructuring process.
A Legacy Brand in Flux
Founded in 1972 and based in Vicenza, Dainese has earned a global reputation for innovation in motorcycling safety gear—among its inventions are the back protector and one of the first wearable airbag systems for riders. It also owns renowned sister brands including AGV helmets (acquired in 2007) and TCX boots (since 2020).
Next Steps and Outlook
While the Dainese creditors takeover, heralds a new chapter, the brand faces a challenging road ahead. The key challenge: can creditors navigate Dainese debt restructuring to restore profitability amid a softening global market and elevated costs? Success will depend on strategic reinvestment in R&D, brand credibility, and distribution channels, while managing the delicate balance between cost-cutting and innovation.
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