Exor with Armani (for the moment) is a no-go. For L Catterton with Etro, however, the answer is yes. Two luxury judgments that confirm that #mergemania shows no signs of giving up. The first is an indiscretion. At the beginning of July, John Elkann would have tested the waters to acquire a minority stake in Armani, but Giorgio Armani (on the left in the photo) would have rejected the proposal. The second is confirmed news. In other words, L Catterton Europe took over the majority stake in Etro. According to financial sources, this is 60% of the capital, which would have been paid 500 million euros.
L Catterton closes on Etro
Private equity giant L Catterton, backed by LVMH, is unleashed, and has also secured the majority of the Italian brand Etro. Financial sources cited by WWD claim that the agreement was of 500 million euros, equal to a 60% share. The founder of Etro, Gerolamo Etro (on the right in the photo), known as Gimmo, will take over as president. “After almost 55 years at the helm of the brand, we believe that the collaboration with L Catterton will initiate a new growth’s phase and consolidation of Etro’s role,” comments Etro in a statement.
Also, according to WWD, real estate properties and the network of direct stores (140 stores in 58 countries) are not included in the sale. The closing of the transaction is expected by the end of the year. And it does not end here. Indeed, L Catterton would be exploring new options for developing its financial dimension. In other words, Reuters writes, it would be considering the IPO or a merger from a SPAC perspective.
Giorgio Armani refuses Exor
In early July, John Elkann would have explored the possibility of taking over a minority stake in Armani. But its founder, Giorgio Armani, seems to have rejected the idea. According to Reuters, the investment was part of a plan to build a luxury conglomerate anchored around the Ferrari brand. “The discussions with Armani (a brand valued by analysts about 6 billion euros, ed) did not go ahead, due to the reluctance of the designer to sell” writes Reuters, underlining how informal talks took place between the parties. But nothing: (for now) Giorgio Armani says no.