2023-07-28 08:08:32 ET
French luxury conglomerate Kering ( OTCPK:PPRUY ) bought a 30% stake in Italian fashion house Valentino for ?1.7B from a Qatari investment firm, Mayhoola.
Under the deal, Kering ( OTCPK:PPRUY ) has the option to buy 100% of Valentino by 2028. The deal could lead to the Qatari investment firm, Mayhoola, becoming a shareholder in Kering or lead to more joint opportunities.
Kering Chairman and CEO Francois-Henri Pinault expressed, "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.’’
Kering ( OTCPK:PPRUY ) is seeking to boost its revenue stream as it struggles to turn around former powerhouse Gucci. The company showed H1 revenues of ? 10.1B euros , up 2%, as Gucci sales struggled. Gucci makes up half of Kering’s ( OTCPK:PPRUY ) total revenues.
Valentino, founded by Valentino Garavani in 1960, recorded revenues of ?1.4B in 2022.
The deal marks a comeback for Kering ( OTCPK:PPRUY ) after purchasing high-profile brands like Saint Laurent and Balenciaga and also a homecoming for Valentino CEO Jacopo Venturini, who previously led merchandising at Gucci for Kering.
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Gucci owner-Kering buys 30% stake in Valentino