Kering acquires a chunk in Italian luxury house Valentino

Amid reports of a Gucci sales slump, luxury group Kering acquires a 30% stake in the Italian luxury house Valentino.

Valentino Haute Couture 2023-24

August 1, 2023: Luxury group Kering, which recently acquired 100% of the fragrance house Creed, announced its massive deal with Balmain-owner Mayhoola. Kering announced that it has successfully struck a deal for a 30% stake in the famed Italian house Valentino. 

A rich and strategic addition to the group’s luxury portfolio, the deal is worth €1.7 billion. The Qatari investment firm Mayhoola, which holds 70% of the share capital of Valentino, will keep the majority interest and cooperate with Kering to explore possible collaborative prospects in line with their own development strategies. The acquisition is anticipated to completion by the end of 2023.

The agreement includes an option for Kering to purchase all of Valentino's shares by the year 2028. The deal is an aspect of a larger strategic alliance between Kering and Mayhoola that might result in Mayhoola acquiring stock in Kering.

Valentino Haute Couture 2023-24

About the strategic partnership, François-Henri Pinault, Chairman and CEO of Kering said, “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.”

Kering reported only a 2% increase in their first half 2023 results, versus competitor LVMH’s 15% in the same time frame. Gucci – Kering’s blue-eyed brand – reported a dismal performance in the first half with sales down by 1% as reported. Kering Eyewear, on the other hand, reported a 51% sales growth. Apart from YSL and Bottega Veneta, Kering’s other maisons reported a combined sales slump of 5%. Acquiring a stake in Valentino could be seen as one of Kering’s move to reshape its balance sheet. 

- By Pritha Debroy

Images © Valentino

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