Luxury fashion company has signed a binding deal with L, the world’s largest consumer-centric private-equity fund Catterton Europe has acquired a majority stake in the company, which is said to be about 60%. The Etro family holds an “important” minority, and its founder, Gerolamo Etro, is becoming chairman of the business.
The transaction is expected to be completed by the end of the year. The terms have not been disclosed, but reports show that the value of the business is about 500 million euros ($ 590 million).
Founded in 1968 as a textile company and still known for its prints, Etro now manufactures womenswear, menswear, accessories, cosmetology / fragrances and household items. It is sold at about 140 high-end retailers and is regularly sold at high-end department stores and high-end e-tail sites.
The company said, “By leveraging L Catterton’s deep investment expertise, category knowledge, consumer insights, and strategic relationships with LVMH, Etro will become one of the leading high-end brands across the product category. Are ready for significant growth. “
The Private Equity Group said, “To expand our customer base and reach younger consumers by expanding into new categories and further strengthening our Italian roots while continuing to interpret styles in new, modern ways. We support Etro by strengthening our brand strategy. “
Importantly, this link-up will allow Etro to expand and deepen its digital business and focus on “significant opportunities in Asia.”
“My family and I take great pride in establishing Etro as a powerful luxury brand that resonates with consumers around the world,” said Gerolamo Etro. “L Catterton has a common vision and unique reputation for our business, and the company builds partnerships with the same approach as our family.After nearly 55 years under our control, we are with L Catterton, Etro can enter the next chapter of growth and solidify its position as one of the finest, long-lasting luxury homes. ”
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LVMH-backed fund to buy a majority stake in Italian luxury brand Etro
Source link LVMH-backed fund to buy a majority stake in Italian luxury brand Etro