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Artémis, the Pinault family’s investment company, has agreed to acquire a majority stake in renowned Hollywood agency Creative Artists Agency (CAA) from American private equity firm TPG, the companies said on Thursday. Bloomberg first reported in July that the Kering chief was in talks to acquire the agency.
“As a leader in its field with an outstanding management team, a crystal-clear focus on providing world-class service to world-class clients and a tremendous track record of growth, CAA has all the relevant characteristics to be part of the Artémis family, adding increased diversity, both in terms of geographical footprint and business activities, to our other assets,” Artémis CEO François-Henri Pinault said in a statement. “CAA’s exceptional insight, relationships, and access across key sectors, combined with their widely regarded level of collaboration and innovation, gives the company a formidable role in driving global opportunities for its diverse and culture-defining clients.”
Financial terms were not disclosed. CAA’s valuation was reported to be as high as $7 billion, up from the $5.5 billion last year when it acquired ICM Partners, per Bloomberg.
Although CAA will be managed separately from Kering, under the Artémis umbrella, the deal comes at a time when fashion brands are increasingly capitalising on their cultural cachet. The ties between fashion and entertainment reached a new peak in June with the blockbuster show from Pharrell Williams for Louis Vuitton (owned by Kering rival LVMH), and competition between fashion brands to secure talent that will achieve brand awareness and reach has intensified. The timing of the acquisition also coincides with the ongoing Hollywood actors’ strike, when celebrities have more time to attend fashion events while filming is on pause.
Founded in 1975, CAA represents “thousands of the world’s leading actors, directors, writers, producers, musical artists, comedians, authors, athletes, coaches, broadcasters, teams, leagues, chefs, designers, fashion talent, consumer brands, and more”, according to its website. (Pinault’s wife, Salma Hayek, is represented by CAA.) Other players in the field include United Talent Agency.
“There are possible synergies between luxury, art and entertainment and owning a talent agency gives you insight into the world of entertainment. However, CAA will be managed independently. In other words, I believe Gucci will work with the ambassadors that they want regardless of their managers,” says Mario Ortelli, managing director of Ortelli & Co.
