MILAN, Sept 12 (Reuters) - Private equity firms Investindustrial and Carlyle Group teamed up to create a high-end interior design group, with total sales of more than 500 million euros ($580 million).
The new venture will target both wider expansion for the existing brands and the acquisition of new ones.
In a joint statement the Italian and U.S.-based firms said the new group would initially consists of furniture maker B&B Italia together with Flos and Luis Poulsen lighting.
The three companies, which are currently owned by Investindustrial, can boast design products including B&B Italia's armchair "Up" designed by artist Gaetano Pesce.
All three companies will be transferred to the new group in which investment groups controlled by Carlyle and Investindustrial will own equal stakes.
"With strong financial backing by Carlyle and Investindustrial the new group will pursue further acquisitions in adjacent niches," the private equity firms said.
JPMorgan and Lazard were financial advisors in the deal, with legal firms Latham Watkins and Chiomenti advising Carlyle Group and Investindustrial respectively.
Piero Gandini, the founder of Flos, and the Busnelli family, who created B&B Italia, will both have minority stakes in the new venture.
Gandini, current Flos CEO, will become the new group's chairman, and Giorgio Busnelli, B&B Italia chairman, will be appointed vice chairman. The transaction is expected to close by the end of the year. ($1 = 0.8627 euros) (Reporting by Francesca Landini and Elisa Anzolin; editing by David Evans)