ACQUISITION GLOBAL
By IFAB MEDIA - NEWS BUREAU - December 1, 2023 | 43 3 minutes read
French luxury conglomerate Kering announced that it has completed the acquisition of a 30% shareholding inprestigious Italian fashion house, Valentino, in accordance with the terms disclosed on July 27, 2023, and following clearance from the antitrust authorities. The deal, valued at 1.7 billion euros ($1.87 billion) in cash, aims to bolster Kering's position in the luxury market and addresses the challenges it faces in revitalizing sales at its renowned brand, Gucci.
The acquisition also includes an option for Kering to purchase the remaining shares of Valentino’s share capital by 2028, indicating a long-term commitment to the iconic Italian fashion house.
This transaction unfolds as part of a broader strategic partnership between Kering and Mayhoola, as outlined in their official release. The partnership holds the potential for Mayhoola to become a shareholder in Kering in the future, marking a pivotal development in the landscape of luxury conglomerates.
In an official statement, Kering clarified, "This stake will be accounted for using the equity method, starting from today onwards."
The move is expected to bring a fresh perspective to both Kering and Valentino, leveraging each other's strengths and contributing to the continued evolution of the global luxury market.
About Kering
A global Luxury group, Kering manages the development of a series of renowned Houses in Fashion, Leather Goods and Jewelry: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ginori 1735 as well as Kering Eyewear and Kering Beauté. By placing creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative expression while crafting tomorrow’s Luxury in a sustainable and responsible way. The company captures these beliefs in their signature: “Empowering Imagination”. In 2022, Kering had over 47,000 employees and revenue of €20.4 billion.