Italian state

By Giulia Segreti and Claudia Cristoferi

MILAN (Reuters) – An Italian state-backed investment fund will pay 70 million euros (60.9 million pounds) to buy 41.2 percent of Italian fashion house Missoni to help boost sales ahead of a possible bourse listing.

The FSI (Fondo Strategico Italiano) fund will carry out its investment mainly through a capital increase with no financial leverage on Missoni, a joint statement said on Friday.

The Missoni family will keep the remaining 58.8 percent of the group they founded back in 1953.

Missoni will now focus on expanding internationally, extending its products range and boosting its retail network. FSICEO Maurizio Tamagnini said the fund may eventually cut its stake via a stock market listing, but added there was "no rush."

Michele Norsa, a long-time executive at rival Salvatore Ferragamo <SFER.MI> who joined FSI last year, will now become vice-chairman at Missoni. On Friday he forecast up-to-double-digit growth in sales at the group for the next five years.

"With the support of the FSI and the strategic vision of the incoming vice-chairman, we will be able to lead this precious family jewel into a bright future," Angela Missoni said.

Small independent brands have become increasingly rare in an industry dominated by large conglomerates such as LVMH <LVMH.PA>, owner of Louis Vuitton and Christian Dior, or Kering <PRTP.PA>, parent to Gucci and Saint Laurent.

The brand famous for its brightly-coloured, zig-zag patterns was founded as a knitwear business by couple Ottavio and Rosita Missoni in the small northern Italian town of Gallarate – an area known in the country for the production of high-end textiles.

Their daughter Angela has been at the creative helm of the company in the last two decades and will continue in that role and also as chairwoman. Also current Director General Emilio Carbonera Giani is set to stay on.

FSI is controlled by Italian state lender Cassa Depositi e Prestiti which in turn is majority-owned by the Treasury.

The big and tight-knit family, still headed by founder Rosita and now encompassing the third generation has always been the driving force behind the brand.

Luca and Giacomo Missoni, part of the youngest generation, will both sit on the new seven-board member of the group.

Missoni debuted on the catwalk in Florence in 1967 and despite its small size became one of the top names in the fashion industry, picked by many celebrities for their red carpet looks.

(Editing by Valentina Za and Toby Chopra)

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