By FashioningLife
Jacopo Raule/Getty Images
Gucci owner acquired the shares in luxury Italian Maison Valentino for an estimated €1.7 billion.
In the midst of stagnating sales from Gucci following the departure of beloved creative director Alessandro Michele, the Kering conglomerate has purchased 30% of Valentino, with the possibility of acquiring 100% by 2028. The Italian brand, currently owned by Mayhoola, a Qatari investment firm, is estimated to be worth a total of €5 billion.
The deal is said to be “part of a broader strategic partnership” between Kering and Mayhoola. Indeed, if the French conglomerate acquires full control over Valentino over the next five years, the firm will become a shareholder, alongside other potential “joint opportunities.”
Under the creative direction of Pierpaolo Piccioli since 2008, Valentino has grown to become one of today’s most prominent brands on the market, as highlighted by Kering, it is “one of the most internationally recognised Italian luxury houses. A Maison de Couture with a strong heritage, a high-end luxury positioning rooted in Haute Couture, and a portfolio of iconic creations. Valentino has developed attractive ready-to-wear, leather goods, and accessories offering, that appeals to a very loyal customer base and celebrities around the world.” Today, the brand owns 211 stores globally and had a revenue of €1.4 billion in 2022.
This partnership aims at maintaining the current efforts made under Mayhoola's direction by supporting “the brand elevation strategy implemented by Jacopo Venturini under the ownership of Mayhoola, which turned it into one of the most admired luxury houses in the world.” This acquisition will allow Kering to bring representations to Valentino’s board and gain some executive power over the brand’s future.
Kering, the owner of the luxury brand Gucci, which accounts for half of the conglomerate revenues, also counts Balenciaga, Saint Laurent, Alexander McQueen, and Bottega Venetta in its portfolio. There is no doubt that with its growing influence, Valentino will have no trouble finding its place amongst these other global brands.
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