One of the largest conglomerates joins forces with this Italian luxury fashion house, acquiring 30% in a strategic partnership.
Kering, the French luxury group known for its Gucci brand, has exciting news.
They’re purchasing a 30% stake in the renowned Italian fashion label, Valentino, from the Qatari investment fund Mayhoola.
The cash deal amounts to a whopping 1.7 billion euros ($1.87 billion).
Moreover, Kering also has an option to buy the entirety of Valentino’s share capital by 2028.
A game-changing alliance
This agreement marks a significant move for Kering, as they become a major shareholder of Valentino, forming a broader strategic partnership with Mayhoola.
The luxury house of Valentino, founded in Rome in 1960 by Valentino Garavani, is globally recognized and cherished for its heritage and iconic creations.
With a strong presence in more than 25 countries, Valentino boasts 211 directly operated stores, and its 2022 revenues reached an impressive €1.4 billion.
The strategic partnership aligns with the brand elevation strategy led by Valentino CEO Jacopo Venturini during Mayhoola’s ownership.
Elevating the fashion house to new heights of admiration in the luxury world.
As part of this collaboration, Kering will also explore potential joint opportunities in line with their development strategies.
An ecstatic union
While Mayhoola retains majority ownership with 70% of the share capital, they express their happiness.
They welcome Kering as a strategic partner for the Maison de Couture’s future development.
Both companies are thrilled to join forces, looking forward to enhancing Valentino’s journey with Kering and potentially exploring other investment opportunities together.
The transaction is expected to be completed by the end of 2023, pending clearance from the relevant competition authorities.
A fresh beginning
François-Henri Pinault, Chairman and CEO of Kering, expresses his excitement about this partnership.
While Rachid Mohamed Rachid, CEO of Mayhoola and Chairman of Valentino, expresses their eagerness to reinforce the brand’s position with Kering’s support.
This alliance between Kering and Valentino holds great promise for the future of both luxury giants, as they embark on a journey together, fueled by beauty, elegance, and unparalleled expertise.
Banner photo via Instagram @maisonvalentino.