MILAN, July 18 (Reuters) – L Catterton, a non-public fairness agency backed by French luxurious large LVMH (LVMH.PA), has agreed to purchase a 60% stake in Italian trend firm Etro, two mentioned on Sunday. sources accustomed to the matter. .
The deal values Etro at about 500 million euros ($ 590 million), the sources mentioned, confirming experiences in Italian newspapers La Repubblica and Il Sole 24 Ore.
Etro mentioned in an announcement that L Catterton was buying a majority stake within the firm, whereas the Etro household would retain “a big minority stake.” He didn’t go into particulars or give monetary particulars.
Gerolamo Etro, who based the corporate in 1968, will likely be president and the deal will shut by year-end, the assertion mentioned.
“We’re delighted to be working with the L Catterton group who will convey their deep information of the style business and expertise within the worldwide improvement of main manufacturers, permitting our firm to succeed in new heights,” mentioned the agency.
LVMH and L Catterton weren’t instantly out there for remark.
In April, a supply near the matter advised Reuters that the Milan-based luxurious model was contemplating an expression of curiosity from L Catterton, an funding agency born out of a partnership between Catterton, LVMH and its billionaire proprietor Bernard Arnault.
One of many sources mentioned that Etro’s 4 kids would stay shareholders with a 40% stake and would proceed to personal Etro’s actual property and immediately operated shops.
L Catterton not too long ago purchased German sandal producer Birkenstock. LVMH, which owns a variety of Italian manufacturers, together with jeweler Bulgari, additionally elevated its stake in Italian luxurious shoemaker Tod’s (TOD.MI) to 10% in April.
Report by Silvia Aloisi; Modifying by Elaine Hardcastle and Crispian Balmer
Our Requirements: The Thomson Reuters Belief Rules.