Kering and Mayhoola enter into a binding agreement for the acquisition by Kering of a 30% shareholding in Valentino, for a cash consideration of €1.7 billion.
The agreement comprises an option for Kering to acquire 100% of the share capital of Valentino no later than 2028. The transaction is part of a broader strategic partnership between Kering and Mayhoola, which could lead to Mayhoola becoming a shareholder in Kering.
Valentino’s Heritage and Market Position Drive Strategic Value
Founded in Rome in 1960 by Valentino Garavani, Valentino is one of the most internationally recognized 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-towear, leather goods and accessories offering that appeals to a very loyal customer base and celebrities around the world. Valentino has 211 directly operated stores in more than 25 countries and has recorded revenues of €1.4 billion and recurring EBITDA of €350 million in 2022.
The strategic partnership will further support the brand elevation strategy implemented by Valentino CEO Jacopo Venturini under the ownership of Mayhoola, which turned it into one of the most admired luxury houses in the world.
Partnership Structure Maintains Mayhoola Majority Control
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 execute on 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 end of 2023, subject to clearance by the relevant competition authorities.
François-Henri Pinault, Chairman and CEO of Kering, commented: “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. 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 that Jacopo Venturini will continue to lead.”
Rachid Mohamed Rachid, CEO of Mayhoola and Chairman of Valentino, highlighted: “Valentino is one of the ultimate Italian luxury authorities and we are very happy to welcome Kering as a strategic partner for the future development of the Maison de Couture. Under our stewardship, Valentino has strengthened its foundations as a highly desirable luxury brand and we will keep reinforcing the brand in the next chapter with Kering. We look forward to our partnership with Kering in Valentino and also in other potential opportunities to explore investments together.”
