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French luxury agglomerate group Kering has acquired 30% of the Italian house Valentino shares for €1.7 billion. With this binding agreement, the brand hands over full autonomy to Kering no later than 2028.
Being a strategic partnership between Kering and Valentino, the deal paves the way for Qatar’s Mayhoola to emerge as one of Kering’s shareholders. Thus, the 30% stake is a gateway for Kering to enter Valentino’s board, with Mayhoola still enjoying its authoritative position.
Kering and Valentino Join Hands
According to both companies, the partnership will support tactics of brand elevation under the ownership of Mayhoola. Moreover, this joint venture combines two strong global brands.
The Kering brands list includes Gucci, Yves Saint Laurent, Balenciaga, Bottega Veneta, Alexander McQueen, Girard-Perregaux, Boucheron, and more. Whereas Mayhoola, owned by Qatari Mayhoola, has the following: Balmain, Pal Zileri, Turkish store chain Beymen, and now the Valentino fashion group.
Despite running a number of chains, Kering’s joint opportunity could be spurred by lacklustre sales of its current brands. Consequently, its net revenue has downgraded by 9% year on year. Although it rose by 1% on a comparable basis, the group trails behind by a 4.2% gain, as expected by analysts. Therefore, to reinvigorate its growth and gain investors’ trust, Kering has pounced on this deal with Mayhoola.
Founded in 1960 by Valentino Garavani, the Valentino brand is a timeless icon of luxury and comfort. Whether a Valentino bag or Valentino perfume, its products are constant staples in the world of fashion. With over 211 stores in over 25 countries, the company gained a remarkable revenue of €1.4 billion in 2022.
Kering has praised the Italian luxury brand as, “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 attractive ready-to-wear, leather goods and accessories offering that appeals to a very loyal customer base and celebrities around the world.”
To cement and strengthen its position even further, Kering has made changes to the leadership board of its most profitable brand, Gucci. The revolution sees the exit of Gucci’s Chief Executive Officer Marco Bizzari, accompanied by its Creative Director, Alessandro Michele.
