Under the agreement, Kering will also have the option to purchase the whole of Valentino’s share capital no later than 2028.

Mayhoola, which bought out the brand in 2012, will retain its 70% stake in Valentino and will continue to run the business while Kering has board representation.

The acquisition is expected to be completed before the end of 2023. Valentino has 211 directly operated stores and brought in €1.4 billion in revenue in 2022.

In a statement, Kering said: “The transaction is part of a broader strategic partnership between Kering and Mayhoola, which could lead to Mayhoola becoming a shareholder in Kering.”

Kering’s recently announced H1 2023 results revealed weak growth at the group, with a 1% reported revenue fall for Gucci standing out.

Source: Reuters