Milan –
French luxury group Kering has struck a cash deal to buy a 30% stake in Italian fashion house Valentino for 1.7 billion euros from a Qatari investment firm.
With the purchase, Kering is seeking to bolster its revenue stream as it struggles to turn around former powerhouse Gucci. Kering on Thursday reported 2% higher first-half revenue to 10.1 billion euros as Gucci sales stabilized.
Under the deal announced Thursday, Kering has an option to buy 100% of Valentino before 2028. The partnership could see Mehula, a Qatari investment firm, become a shareholder in Kering, as well as other potential “joint opportunities”. said in the statement.
Kering’s chairman and CEO Francois-Henri Pinault expressed praise for “the evolution of Valentino under Mayahula ownership”, which Kering said had turned Valentino into “one of the most admired luxury houses in the world.”
“I am very pleased to take this first step in our collaboration with Mayhula to further a very strong strategic journey of developing Valentino and brand elevation,” said Jacopo Venturini, CEO of Valentino, citing the role, which ‘Will continue to lead.’
Gucci, which accounts for nearly half of Kering’s revenue, is set to relaunch with a new management team and a new creative director, Sabato de Saran O, who will unveil his first collection during Milan Fashion Week in September.
Valentino, founded by Valentino Garavani in 1960, reports a revenue of 1.4 billion euros in 2022. Pierpaolo Piccoli has been Creative Director at Valentino since 2008, working alongside Maria Grazia Chiuri from 2008–16. With its corporate base in Milan and design studio in Rome, the fashion house is a mainstay of Paris Fashion Week with its womenswear and couture collections, while recently returning menswear to Milan.
Source: www.bing.com
