French luxury group, Kering, has announced its acquisition of a 30% stake in Italian fashion house Valentino. This move solidifies Kering’s position in the Italian fashion market, building upon their previous successful acquisitions of Gucci, Bottega Veneta, and Brioni. The transaction, valued at 1.7 billion euros, is part of a strategic alliance between Kering and Qatari investment fund, Mayhoola, the current owner of Valentino. In addition to the acquisition, Kering has the option to purchase the remaining shares of Valentino by 2028, showcasing their long-term commitment to the brand. This partnership opens the door for potential collaborations between the two entities and the possibility of Mayhoola becoming a shareholder in Kering.
François-Henri Pinault, CEO of Kering, expressed his satisfaction with the collaboration, stating, “I am very pleased with this first step in our collaboration with Mayhoola for the growth of Valentino, and to continue the brand’s impressive trajectory under the leadership of Jacopo Venturini.”
This announcement comes on the heels of Kering releasing its financial results for the first half of 2023 earlier today. The group reported a 2% increase in revenue, reaching 10.1 billion euros from January to June. While Gucci faced challenges due to the departure of creative director Alessandro Michele in late 2022 and ongoing investment strategies, Kering experienced growth from Yves Saint Laurent, with a 6% increase in revenue amounting to 1.6 billion euros.
Additionally, Kering made a foray into the prestigious beauty sector last month with its acquisition of high-end perfumery brand, Creed. This move indicates Kering’s expansion into new avenues of luxury beyond fashion.
Useful Links:
1. Kering official website
2. Valentino official website
