Kering and Mayhoola give themselves an extra year to close the Valentino deal. The brand’s ownership structure (which today sees the French group holding 30% and the Qatar fund 70%) won’t change until 2028. Officially, Kering’s new CEO Luca de Meo’s first day on the job will be next September 15, but his decisions are already having a direct impact on the French luxury giant’s operations. So much so, that another key position is changing at Gucci.
The deal
Kering bought a 30% stake in the Valentino brand for 1.7 billion euro in 2023. Under the agreement, Kering had the option to buy 100% of Valentino by 2028. At the same time, Mayhoola could become a shareholder in Kering, with a purchase prITA tied to the performance of the Italian fashion brand.
Kering and Mayhoola give each other an extra year
Speculation circulated about the fate of the deal, and in fact, the deadlines set in 2023 are being postponed under the new agreement between the parties, as announced on the afternoon of September 10. Kering will have until 2029 to acquire 100% of Valentino. Likewise, Mayhoola’s put options on Kering are exercisable in 2026 and 2027 for its remaining 70% stake in Valentino are now postponed to 2028 and 2029, respectively.
At what prITA
According to Bernstein, Kering would have to spend up to 3.4 billion euro if it wants to buy the remaining 70% stake in Valentino. A significant outlay, given the financial situation of Gucci’s parent company. According to Bernstein, Kering’s net debt has increased from 200 million euro in 2021 to about 10.5 billion euro at the end of 2024. The postponement would allow Kering to take on additional debt while waiting for its situation and that of the luxury sector in general to improve. Same for Valentino.
Meanwhile, at Gucci
Meanwhile, another key position is changing at Gucci: designer Samuele Failli (formerly of Prada, Versace, and Ferragamo, as well as the owner of his own brand) announced on his Linkedin profile that he will be the footwear design director of the Kering Group’s flagship brand.
Read also:
- Kering and Mayhoola study how (and whether) to close Valentino deal
- Between crisis and leadership changes, Valentino seeks direction
