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French fashion house Kering acquires 30% of Italian brand Valentino

28 Jul '23

2 min read

Pic: Ewa Studio / Shutterstock.com

Insights

French fashion firm Kering and Mayhoola have agreed on Kering's 30 per cent share acquisition in Italian fashion brand Valentino for €1.7 billion, with an option to acquire 100 per cent by 2028.
Mayhoola retains 70 per cent ownership.
The deal fosters a strategic partnership and potential shared investments.
The transaction is expected to conclude this year.

Kering & Mayhoola have entered into a binding agreement for the acquisition by Kering of a 30 per cent shareholding in Valentino, for a cash consideration of €1.7 billion. The agreement comprises an option for Kering to acquire 100 per cent of the share capital of Valentino no later than 2028.

The transaction is part of a broader strategic partnership between Kering and Mayhoola, which could lead to Mayhoola becoming a shareholder in Kering, the French fashion house said in a media release.

Kering will become a significant shareholder with board representation. Mayhoola will remain the majority shareholder with 70 per cent of the share capital and will continue to execute on the successful brand elevation strategy. The transaction is expected to close by end of 2023, subject to clearance by the relevant competition authorities.

Founded in Rome in 1960 by Valentino Garavani, Valentino is one of the most internationally recognised Italian luxury houses. It has 211 directly operated stores in more than 25 countries and has recorded revenues of €1.4 billion and recurring EBITDA of €350 million in 2022. The strategic partnership will further support the brand elevation strategy implemented by Valentino CEO Jacopo Venturini under the ownership of Mayhoola.

François-Henri Pinault, chairman and CEO of Kering, commented: “I am impressed with the evolution of Valentino under Mayhoola ownership and very delighted that Mayhoola has chosen Kering as its partner for the development of Valentino, a unique Italian house that is synonymous with beauty and elegance. I am very pleased of this first step in our collaboration with Mayhoola to develop Valentino and pursue the very strong strategic journey of brand elevation that Jacopo Venturini will continue to lead.”

Rachid Mohamed Rachid, CEO of Mayhoola and chairman of Valentino, highlighted: “Valentino is one of the ultimate Italian luxury authorities and we are very happy to welcome Kering as a strategic partner for the future development of the Maison de Couture. Under our stewardship, Valentino has strengthened its foundations as a highly desirable luxury brand and we will keep reinforcing the brand in the next chapter with Kering. We look forward to our partnership with Kering in Valentino and also in other potential opportunities to explore investments together.”

Fibre2Fashion News Desk (KD)

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