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Kering will acquire a 30 per cent share in Valentino from parent company Mayhoola for a cash consideration of €1.7 billion, the conglomerate announced on Thursday. The agreement, a significant acquisition for Kering’s fashion business, includes the option for Kering to acquire 100 per cent of the share capital of Valentino no later than 2028.
The transaction is part of a broader strategic partnership between Kering and Mayhoola, which could lead to Mayhoola becoming a shareholder in Kering. The transaction is expected to close by the end of 2023, subject to approval.
François-Henri Pinault, chairman and CEO of Kering said in a statement: “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. 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 that Jacopo Venturini will continue to lead.”
Valentino’s revenues in 2022 amounted to €1.4 billion with recurring EBITDA of €350 million in 2022. The strategic partnership will further support the brand elevation strategy implemented by Valentino CEO Jacopo Venturini under the ownership of Mayhoola. Kering will become a significant shareholder with board representation.
Mayhoola will remain the majority shareholder with 70 per cent of the share capital. As part of the broader partnership, Kering and Mayhoola will explore potential joint opportunities in line with their respective development strategies.
Rachid Mohamed Rachid, CEO of Mayhoola and chairman of Valentino, said: “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. Under our stewardship, Valentino has strengthened its foundations as a highly desirable luxury brand and we will keep reinforcing the brand in the next chapter with Kering. We look forward to our partnership with Kering in Valentino and also in other potential opportunities to explore investments together.”
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