MILAN (Reuters) -U.S. private equity group Carlyle Group ( CG ) is expected to clinch in the coming days an accord to sell Italian fashion brand Twinset to local investment firms Borletti Group and Quadrivio, two sources close to the matter said on Wednesday.

Under the deal, the two investment firms will acquire the heavily indebted premium clothing brand at an enterprise value of slightly less than 200 million euros ($224 million), the sources said.

Advised by Rothschild, Carlyle last year launched a sale process for Twinset, a brand known for its romantic style that was founded in 1987 near the northern Italian city of Modena, an area famous for its myriad small knitwear companies.

Mostly third-party suppliers, many of these companies came under pressure when cheaper global competition hit, prompting some to reinvent themselves as manufacturers with their own brand.

Founded by creative director Simona Barbieri and Tiziano Sgarbi, Twinset was acquired by Carlyle in 2012. In 2015 the U.S. firm raised its initial 72% stake to 90%.

After investing in Twinset's retail strategy with international store openings, and to widen its product offering, in 2017 Carlyle gained full control of the brand by buying the remaining 10% from Barbieri.

Earlier this year Il Sole 24 Ore reported that Quadrivio and Borletti were in exclusive talks to buy the company.

Twinset posted a 2023 core profit of 34 million euros on revenue of just over 200 million, Il Sole 24 Ore reported.

Quadrivio, Borletti Group and Rothschild declined to comment. Carlyle did not reply to a request for a comment.

($1 = 0.8923 euros)

(Reporting by Elisa Anzolin; Editing by Valentina Za)