French luxury goods manufacturer Kering has announced that it has reached an agreement in principle with Qatari investment fund Mayhoola to buy a 30% stake in Italian fashion house Valentino. The deal will cost Kering €1.7 billion, which will be paid in cash.
As noted in the press release, the agreement includes an option for the French company to acquire 100% of Valentino shares by 2028. And the deal itself is part of a long-term cooperation with Mayhoola, the result of which could be the entry of the Qatari fund into the number of shareholders of Kering itself.
Meanwhile, Kering itself presented today, July 27, a financial report on the results of the second quarter and the first half of the year. The group’s revenue for both the second quarter and the first half of the year grew by 2% year-on-year. And sales of Gucci, Kering’s biggest brand, were 1% lower than in 2022. Analysts had expected Gucci’s revenue growth of 4.2% in the second quarter.
Valentino is a prestigious Italian fashion house known for its luxury and haute couture designs. It was founded in 1960 by Valentino Garavani, often referred to simply as Valentino, and his business partner Giancarlo Giammetti. The brand quickly gained recognition and became synonymous with high-end, glamorous fashion.
The acquisition of a 30% stake in Valentino by Kering represents a significant move in the luxury goods industry and could potentially strengthen both companies’ positions in the market.
