EssilorLuxottica is considering acquiring a 5% to 10% stake in Giorgio Armani. The eyewear group would not take an active role in the company, nor would it seek a seat on the board of directors.
Passive participation
The potential transaction comes in the wake of Giorgio Armani’s death: the Italian fashion entrepreneur passed away in September at the age of 91. In his will, Armani opened the door to a sale of the fashion house he had built over fifty years.
He requested his heirs to sell an initial 15% within 18 months to one of three preferred buyers — LVMH, EssilorLuxottica, or L’Oréal — or to a company of comparable size. If the buyer receives approval from the heirs, they can scale up to a majority stake after three years. If this does not happen, an IPO will be considered.
