French Luxury Group Kering to Acquire 30% Of Valentino

According to a Thursday announcement from the conglomerate, Kering will pay parent firm Mayhoola €1.7 billion in cash to purchase a 30% stake in Valentino. The arrangement, a significant acquisition for Kering's fashion division, gives Kering the option to buy 100% of Valentino's share capital by the end of 2028.

The purchase is part of Kering and Mayhoola's larger strategic collaboration, which could lead to Mayhoola becoming a shareholder in Kering. Subject to approval, the transaction is scheduled to close by the end of 2023.

"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," said François-Henri Pinault, chairman, and CEO of Kering. I am extremely pleased with this initial step in our relationship with Mayhoola to expand Valentino and pursue the very strong strategic brand elevation path that Jacopo Venturini will continue to lead."

Valentino's revenue in 2022 was €1.4 billion, with a recurring EBITDA of €350 million. The strategic alliance will strengthen Valentino CEO Jacopo Venturini's brand elevation strategy under Mayhoola ownership. Kering will become a large shareholder with voting rights on the board.

With 70% of the share capital, Mayhoola will remain the majority stakeholder. Kering and Mayhoola will examine potential collaborative opportunities in line with their respective development plans as part of the broader relationship.

"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," said Rachid Mohamed Rachid, CEO of Mayhoola and chairman of Valentino. Valentino has established its foundations as a very coveted luxury brand under our supervision, and we will continue to strengthen the brand in the next chapter with Kering. We are excited about our cooperation with Kering in Valentino, as well as additional possible prospects to invest together."