Kering buys 30% of Valentino

The prestigious French conglomerate Kering, in its efforts to revive sales figures for its flagship brand Gucci, announced this Thursday that it has acquired a 30% stake in the renowned Italian label Valentino, paying €1.7 billion ($1.87 billion) in cash to the Qatari investment fund Mayhoola.

This deal grants Kering the option to purchase all of Valentino’s shares, but no later than 2028.

Founded in Rome in 1960 by Valentino Garavani, Valentino 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 an appealing ready-to-wear, leather goods, and accessories offering that attracts a very loyal customer base and celebrities globally. Today, Valentino boasts 211 directly operated stores in over 25 countries and has recorded revenues of €1.4 billion and a recurring EBITDA of €350 million in 2022.

The strategic partnership will further support the brand elevation strategy implemented by Valentino’s CEO, Jacopo Venturini, under Mayhoola’s ownership, transforming it into one of the world’s most admired luxury houses.

Kering will become a significant shareholder with Board representation. Mayhoola will remain the majority shareholder with 70% of the share capital and will continue to drive the successful brand elevation strategy.

As part of the broader partnership, Kering and Mayhoola will explore potential joint opportunities in line with their respective development strategies.

The transaction is expected to close by the end of 2023, subject to approval from the relevant competition authorities.

François-Henri Pinault, Chairman and CEO of Kering, commented: “I am impressed with Valentino’s evolution under Mayhoola’s ownership and am very pleased that Mayhoola has chosen Kering as its partner for Valentino’s development, a unique Italian house synonymous with beauty and elegance. I am delighted with this first step in our collaboration with Mayhoola to develop Valentino and continue the robust strategic journey of brand elevation that Jacopo Venturini will continue to lead.”

Rachid Mohamed Rachid, CEO of Mayhoola and Chairman of Valentino, emphasised: “Valentino stands as one of the ultimate Italian luxury authorities, and we are thrilled to welcome Kering as a strategic partner for the Maison de Couture’s future development. Under our guidance, Valentino has strengthened its reputation as a highly sought-after luxury brand, and we will continue bolstering the brand in the next chapter with Kering. We eagerly anticipate our partnership with Kering in Valentino and also exploring other potential investment opportunities together.”