Kering buys 30% of Valentino, could buy full control, forges close links with Mayhoola

By

Sandra Halliday

Published
Jul 27, 2023

There was big news on Thursday afternoon as Gucci owner Kering and Valentino owner Mayhoola said the French luxury giant has acquired a 30% stake in Valentino for €1.7 billion in cash.

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And the binding agreement includes an option for Kering to acquire 100% of the share capital of Valentino no later than 2028. They said the transaction is “part of a broader strategic partnership” between them, which could even lead to Mayhoola becoming a shareholder in Kering.

For now, the initial minority shareholding deal should complete by the end of the year, after it’s been looked at by competition authorities. Rothschild & Co was the financial advisor to Mayhoola.

Valentino is one of the most influential and prominent luxury labels in the fashion sector today and can undeniably hold its own against the star brands of Kering’s portfolio such as Gucci, Saint Laurent, Bottega Veneta and Balenciaga.

Kering Chairman and CEO François-Henri Pinault said he’s “impressed with [its] evolution” under its current 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”.

He also said CEO Jacopo Venturini will continue to lead the brand.

Rachid Mohamed Rachid, CEO of Mayhoola and Chairman of Valentino, added that his company has overseen Valentino strengthening its “foundations as a highly desirable luxury brand and we will keep reinforcing the brand in the next chapter with Kering”.

Founded in Rome in 1960 by Valentino Garavani, Kering said it’s “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”. 

Today, it has 211 directly operated stores in more than 25 countries and recorded revenues of €1.4 billion with recurring EBITDA of €350 million in 2022.

The companies said the strategic partnership “will further support the brand elevation strategy implemented by Jacopo Venturini under the ownership of Mayhoola, which turned it into one of the most admired luxury houses in the world”.

The 30% stake will give Kering representation on Valentino’s board with Mayhoola remaining in control and continuing “to execute on the successful brand elevation strategy”.

But the two firms will “explore potential joint opportunities in line with their respective development strategies”.

As well as owning the aforementioned labels, Kering also controls Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, and Ginori 1735, plus Kering Eyewear and Kering Beauté. 

Meanwhile Mayhoola, an investment entity directly controlled by Qatari Mayhoola for Investments LLC, has a portfolio that also includes Balmain, Pal Zileri and Turkish luxury department stores chain Beymen.