Kering to acquire 30% stake in luxury fashion brand Valentino for €1.7bn

Kering, a leading player in the global luxury sector, has inked a deal with Mayhoola, an investment entity controlled by Qatari Mayhoola for Investments, to acquire a 30% stake in luxury fashion brand Valentino. The cash consideration for this transaction stands at €1.7 billion.

The partnership also provides Kering with an option to purchase the remaining share capital of Valentino no later than 2028, indicating a long-term strategic alliance between Kering and Mayhoola. This may potentially result in Mayhoola acquiring a stake in Kering.

Valentino, a globally celebrated Italian luxury house founded in 1960 by Valentino Garavani, is noted for its luxury positioning deeply rooted in Haute Couture. Its extensive portfolio of iconic creations and attractive ready-to-wear, leather goods, and accessories has garnered a loyal customer base and global celebrity following. With 211 directly operated stores across 25 countries, Valentino recorded revenues of €1.4 billion and a recurring EBITDA of €350 million in 2022.

Kering to acquire 30% stake in Valentino for €1.7bn. Photo courtesy of KERING.

François-Henri Pinault, Chairman and CEO of Kering, expressed his delight at the partnership, saying, “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.”

Under this new partnership, Kering’s investment will lend further support to Valentino’s brand elevation strategy implemented by its CEO, Jacopo Venturini, under Mayhoola’s ownership. With board representation, Kering will now become a significant shareholder, while Mayhoola will retain majority ownership with 70% of the share capital.

As part of this expansive partnership, Kering and Mayhoola plan to explore potential joint opportunities aligning with their respective development strategies. The transaction is anticipated to conclude by the end of 2023, pending clearance from relevant competition authorities.

Rachid Mohamed Rachid, CEO of Mayhoola and Chairman of Valentino, welcomed Kering as a strategic partner, stating, “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.”