MILAN (AP) – French luxury conglomerate Kering has reached a cash deal to purchase a 30 per cent stake in Italian fashion house Valentino for EUR1.7 billion from a Qatari investment firm.
With the purchase, Kering is seeking to shore up its revenue stream as it struggles to turn around former powerhouse Gucci. Kering on Thursday reported first-half revenues of EUR10.1 billion, up two per cent, as Gucci sales stagnate.
Under the deal announced on Thursday, Kering has the option to buy 100 per cent of Valentino no later than 2028. The partnership could lead to the Qatari investment firm, Mayhoola, becoming a shareholder in Kering, as well as other potential “joint opportunities”, it said.
Kering Chairman and Chief Executive Officer (CEO) Francois-Henri Pinault expressed admiration for “the evolution of Valentino under Mayhoola ownership”, which Kering said turned Valentino “into one of the most admired luxury houses in the world”.
“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,’’ citing Valentino CEO Jacopo Venturini, who “will continue to lead”.
