Kering will buy a 30% stake in Italian luxury house Valentino, a deal valued at 1.7 billion euros, or $1.87 billion at current exchange rates, the company announced Thursday.
The agreement includes an option for Kering to acquire 100% of the house by the end of 2028. The deal is part of a partnership between Kering and Mayhoola, the luxury investment firm that owns Valentino, and it could lead to Mayhoola becoming a Kering shareholder, per the release.
“Valentino is one of the ultimate Italian luxury authorities and we are very happy to welcome Kering as a strategic partner for the future development of the Maison de Couture,” Rachid Mohamed Rachid, CEO of Mayhoola and Chairman of Valentino, said in the release. “Under our stewardship, Valentino has strengthened its foundations as a highly desirable luxury brand and we will keep reinforcing the brand in the next chapter with Kering. We look forward to our partnership with Kering in Valentino and also in other potential opportunities to explore investments together.”
The news comes ahead of Kering’s earnings results for the first half of 2023, set to be announced Thursday.
The transaction is expected to close by the end of the year. Kering’s other luxury holdings include Gucci, Yves Saint Laurent and Balenciaga.
“I am impressed with the evolution of Valentino under Mayhoola ownership and very delighted that Mayhoola has chosen Kering as its partner for the development of Valentino, a unique Italian house that is synonymous with beauty and elegance,” François-Henri Pinault, Chairman and CEO of Kering, said in the release. “I am very pleased of this first step in our collaboration with Mayhoola to develop Valentino and pursue the very strong strategic journey of brand elevation that Jacopo Venturini will continue to lead.”
