Control of the Etro group passes to L Catterton, private equity fund whose largest subscriber is LVMH by Bernard Arnault. The operation, already anticipated by the Sole 24 Ore, was signed today. It provides for the transfer of 60% of the group to private equity for an overall valuation of the Milanese fashion house of half a billion euros. The properties of the group remain out of the agreement. The advisors of the operation are Rothschild and Studio Pedersoli, while for L-Catterton Pwc and Lmcr.
Negotiations began at the beginning of the year. The Etro group in fact needs a capital injection. However, in the last year, Covid has had a heavy impact on the margins of the entire luxury and fashion sector and also on the financial statements of the Milanese group.
Before the outbreak of the pandemic, in 2019, the turnover of the parent company Gefin went (according to Pambianco data) from € 284.98 million to € 283.59 million. The 2019 EBITDA was instead equal to 15.7 million, against 22.49 million of the previous year.
The company was founded in the late 1960s by Gimmo Etro and is still owned by the second generation of the family today: the children Jacopo, Kean, Veronica and Ippolito. In September of last year Stefano Sassi, former CEO of Valentino, started collaborating with the group’s top management. L Catterton’s entrance is also functional to the international growth of the group.