Dry buy 30% of Valentino. The French luxury conglomerate e May hoolathe group that owns the Italian fashion house, have entered into a binding agreement for the acquisition by Kering of a 30% stake in Valentino, for a cash consideration of 1.7 billion euros.
The agreement includes an option in favor of Kering to acquire 100% of the share capital of Valentino no later than 2028. The transaction is part of a broader strategic partnership between the two groups, which could lead Mayhoola to become a shareholder of Kering , reads the note.
As part of the deal, Kering further explains, the brand elevation strategy pursued by the CEO of Valentino will continue, Jacopo Venturini, under the aegis of Mayoola, who will remain the majority shareholder holding 70% of the capital of the Roman fashion house. However, Kering will become a “significant shareholder”, with a presence also on the brand’s board of directors. The transaction is expected to close by the end of 2023, subject to clearance by the relevant competition authorities.
At the same time, Kering made public its financial results for the first half of 2023. In the first half of the year, the group, fresh from a managerial revolution which saw Frances Bellettini rising to head of all brands as Kering Deputy CEO, totaled revenues of 10.1 billion euros, up 2% on the same period of the previous year. Looking at profitability, operating profit in the period amounted to 2.7 billion (-3% at constant exchange rates), with an incidence on sales of 27%. In the second quarter, group revenues exceeded 5 billion euros, up 2% at current exchange rates (+3% at constant exchange rates).
As for the individual brands of the group, Gucci it remains the first brand by absolute value with revenues of 5.1 billion euros in the six months, albeit down by 1% on an annual basis (+1% at constant exchange rates). In second position there is Saint Laurentwhich generated revenue of €1.57 billion in the first half of the year, up 6 percent. Bottega Veneta instead it reached 833 million euros, in line with the first half of 2022, while the other maisons totaled a total of 1.8 billion euros (-5 percent). In Q2, the three fashion houses totaled revenues of 2.5 billion (-3%), 770 million (+4%) and 438 million euros respectively, in line with the previous year.
In particular, Balenciaga it showed “recovery, thanks above all to the Asia-Pacific region; the clothing of Alexander McQueen obtained “good results”, while Brijuni “continues to make progress, thanks to a good mix of formal, leisure and bespoke offerings”. The jewelery houses of the group (Boucheron, Pomellato e Definition) maintained “their strong trajectory, recording double-digit growth”.
Dry Eyewearfinally, it achieved a turnover of 869 million euros in the period archived, up by 51 percent thanks to the contribution of maui jim.