Kering Luxury Group to Become Valentino’s Significant Shareholder

@Valentino Haute Couture

In a landmark move that marks a significant shift in the luxury fashion landscape, Kering and Mayhoola have announced a binding agreement that will see Kering acquire a 30% shareholding in the prestigious Italian luxury house, Valentino. The cash consideration for this acquisition amounts to a staggering €1.7 billion. This partnership forms part of a more extensive strategic alliance between Kering and Mayhoola, with potential implications for Mayhoola becoming a shareholder in Kering in the future.

Founded in 1960 by the legendary Valentino Garavani, the Maison de Couture has achieved global recognition and remains one of the most esteemed Italian luxury houses. With a rich heritage deeply rooted in Haute Couture, Valentino has continually wowed the fashion world with its iconic creations, catering to a discerning clientele and celebrities alike. Offering a range of luxurious ready-to-wear, leather goods, and accessories, the brand boasts 211 directly operated stores in over 25 countries, achieving impressive revenues of €1.4 billion and recurring EBITDA of €350 million in 2022.

The strategic partnership between Kering and Mayhoola aims to bolster the brand elevation strategy masterminded by Valentino CEO Jacopo Venturini, who has succeeded in elevating the luxury house’s status to unprecedented heights under Mayhoola’s ownership. This collaboration will usher in a new era of growth and innovation for Valentino, solidifying its position as one of the world’s most admired luxury fashion houses.

With this deal, Kering will emerge as a significant shareholder in Valentino, obtaining board representation. However, Mayhoola will continue to remain the majority shareholder, retaining 70% of the share capital, and will continue to spearhead the successful brand elevation strategy. The partnership holds great promise for both parties, opening doors to potential joint opportunities that align with their respective development strategies.

The transaction, subject to clearance by relevant competition authorities, is slated for completion by the end of 2023. François-Henri Pinault, Chairman, and CEO of Kering, expressed his admiration for Valentino’s transformation under Mayhoola’s ownership and enthusiastically welcomed Kering’s collaboration with the renowned Italian luxury house. He acknowledged Valentino’s iconic status, synonymous with beauty and elegance, and looks forward to contributing to the brand’s journey of continued elevation under Jacopo Venturini’s guidance.

Rachid Mohamed Rachid, CEO of Mayhoola and Chairman of Valentino, also expressed his delight at having Kering as a strategic partner in shaping the future of the Maison de Couture. Celebrating Valentino’s position as a pinnacle of Italian luxury authority, Rachid emphasized that Mayhoola’s stewardship has already fortified the brand as a highly desirable luxury label. The collaboration with Kering will undoubtedly further reinforce Valentino’s standing in the luxury fashion industry, ushering in a new era of success for the esteemed brand. Rachid also expressed enthusiasm for exploring potential joint ventures and investments with Kering beyond the scope of Valentino, promising exciting prospects for both luxury powerhouses.