Through investment company L Catterton, Bernard Arnault's luxury group LVMH is acquiring a majority stake in Milan-based fashion house Etro.
A stake of 60 per cent
The deal values Etro at around 500 million euros. L Catterton acquires a 60 per cent stake in the fashion company, while the four children of founder Gerolamo Etro each hold 10 per cent of the shares. La Tribune reports this based on Italian sources. The family would continue to own all real estate related to the group's activities, from its boutiques to its headquarters.
LVMH already owns several Italian luxury brands, including Fendi, Loro Piana and the jeweller Bulgari. Etro itself started in 1968 as a fabric manufacturer, later developing into a fully-fledged ready-to-wear brand. Worldwide, the label has a network of 140 stores. In addition to women's and men's fashion, the range includes accessories, perfumes, home decor items and household linen. The brand's creations make extensive use of paisley and other patterns.
The acquisition is expected to be completed by the end of this year. After the deal, founder Gerolamo Etro will become chairman of the company.