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Kering has agreed to buy 30 per cent of Valentino from Qatar’s Mayhoola, as part of a “strategic” deal that gives the French luxury group the option to take full control of the Italian fashion house by 2028.
The €1.7bn purchase is “part of a broader strategic partnership” between Kering and Mayhoola, the investment vehicle run by Sheikha Moza bint Nasser al-Missned, which could lead to Mayhoola becoming a shareholder in Kering, the French group said on Thursday.
Kering, which will be represented on Valentino’s board, has an option to buy 100 per cent of the Italian brand within five years.
“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,” said François-Henri Pinault, chief executive of Kering. “I am very pleased with this first step in our collaboration with Mayhoola to develop Valentino.”
The all-cash agreement comes after Kering bought high-end perfumer Creed for €3.5bn in June. The Paris-based group owns a stable of luxury brands including Gucci and Saint Laurent, but its performance has lagged industry leaders LVMH and Hermes due to weaker performance at Gucci, Kering’s biggest brand.
Founded in 1960 in Rome, Valentino has 211 stores worldwide and had revenues of €1.4bn and earnings before interest, taxes, depreciation and amortisation of €350mn last year.
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