Italian investment holding company Exor, owned by the Agnelli family, has recently announced its acquisition of a significant 24% stake in luxury shoemaker Christian Louboutin. The deal, valued at a substantial 541 million euros ($643 million), is set to provide a significant boost to Louboutin’s future growth and expansion.
The partnership between Exor and Louboutin has been met with great enthusiasm by both parties as they recognize the immense potential it holds for the iconic footwear brand. With Louboutin poised to capitalize on new opportunities, Exor is viewed as an ideal partner to support its continued success. This strategic investment will enable Louboutin to leverage Exor’s extensive expertise and resources to further develop and reinforce its position in the competitive luxury footwear market.
As part of the agreement, Exor will have the privilege of nominating two members to Louboutin’s esteemed seven-member board of directors. This ensures that Exor will have a significant influence on the strategic decisions and overall trajectory of the company. The finalization of this deal is anticipated to take place in the second quarter of this year, indicating a swift implementation of the partnership.
Christian Louboutin, founded in 1991, has become synonymous with luxury footwear, particularly renowned for its distinct red-soled shoes. The brand has garnered a devoted following of celebrities, musicians, and even members of royalty. Louboutin currently boasts an impressive network of 150 directly-operated retail stores across 30 countries, emphasizing its dedication to global expansion and accessibility.
Exor’s foray into the luxury market is not a new venture for the investment holding company. It has established itself as a major investor in the prestigious high-end carmaker Ferrari. Furthermore, Exor solidified its position as the largest shareholder of the Chinese luxury group Shang Xia in December, with a substantial investment of approximately 80 million euros. Shang Xia was co-founded by the esteemed French luxury group Hermes.
Given Exor’s remarkable portfolio and impressive track record in the luxury industry, this partnership is predicted to propel Louboutin to new heights. Both companies retain high levels of optimism for the future and are eager to seize the bountiful opportunities that lie ahead. In an ever-evolving and changing luxury market, collaborations such as this will prove instrumental in driving the continued success of iconic brands like Christian Louboutin.
Useful links:
1. https://www.bloomberg.com/news/articles/2021-03-01/exor-agrees-to-buy-24-of-christian-louboutin-from-venture-capital-impactiam-track
2. https://www.reuters.com/article/us-chinainvestment-exor-holdings-idUSKBN28W089
