Etro, the esteemed Italian luxury label, is about to undergo a substantial transformation through a strategic partnership with L Catterton Europe, the largest private equity firm focused on consumer goods. As part of the agreement, L Catterton Europe will acquire a majority stake of approximately 60% in Etro, while the Etro family will retain a significant minority holding. Gerolamo Etro, the founder of the brand, will take on the role of chairman. The deal is set to be finalized by the end of the year, with industry reports estimating the brand’s valuation at €500 million ($590 million).
Originally established in 1968 as a textile company, Etro has since expanded its offerings to include a wide range of products, such as womenswear, menswear, accessories, beauty/fragrances, and home goods. The brand is known for its distinctive prints, which have become synonymous with its identity. Etro products are sold through around 140 high-end retail stores and are prominently featured in luxury department stores and upscale e-commerce platforms.
By partnering with L Catterton, Etro intends to capitalize on the private equity firm’s extensive expertise in investments, deep understanding of consumer trends, and strategic relationships with LVMH, a leading luxury goods conglomerate. This collaboration is expected to drive significant growth for Etro and position it as one of the top high-end brands across various product categories.
L Catterton will assist Etro in fine-tuning its brand strategy to expand its customer base and appeal to younger generations by reinterpreting its signature style in a modern way. The partnership will also facilitate Etro’s expansion into new product categories and strengthen its Italian heritage. Notably, this alliance will enhance Etro’s digital presence and enable it to tap into the vast potential of the Asian market.
Expressing his pride in the brand’s success, Gerolamo Etro stated, “My family and I take great pride in having established Etro as a strong luxury brand that resonates with consumers around the globe.” He further highlighted the shared vision and alignment with L Catterton, emphasizing the firm’s approach to partnership. With the support of L Catterton, Etro aims to enter its next phase of growth and solidify its position as one of the enduring luxury fashion houses, which has been under the guidance of the Etro family for nearly 55 years.
As for the relevant links, here are two useful resources:
1. LVMH: Learn more about LVMH, the multinational luxury goods conglomerate, with strategic relationships to L Catterton and its potential impact on Etro’s growth.
2. Etro Official Website: Explore the official website of Etro to discover the brand’s products, history, and latest updates.
