Kering takes 30% stake in Valentino and forges partnership with Mayhoola

Luxury conglomerate Kering has taken 30% shareholding in Italian house Valentino in a €1.7 billion deal that gives it the option to take 100% control.

The deal is part of a wider strategic partnership between Kering and Valentino owner Mayhoola, which could lead to the Qatari investment firm becoming a shareholder in Kering.

Founded in 1960 by Valentino Garavani, the Valentino house has enjoyed a surge in popularity lately thanks to the talents of its creative chief Pierpaolo Piccioli and the backing of Mayhoola, which acquired it in 2012.

Valentino's couture shows draw a star-studded audience who wear its gowns on red carpets around the globe and its rock-stud shoes and accessories (introduced by former co-creative chief Maria Grazia Chiuri who is now at Dior) remain a signature.

The brand has done a particularly good job of attracting a new generation of followers and customers, while retaining an ageless appeal. British actress Florence Pugh is a face of the brand and stars in its recent ad campaign and has been pictured in its vibrant gowns on numerous occasions.

Valentino’s new campaign featuring Florence Pugh

Today, Valentino has 211 directly operated stores in more than 25 countries and has recorded revenues of €1.4 billion and recurring EBITDA of €350 million in 2022. It will join brands such as Gucci, Saint Laurent and Alexander McQueen in the Kering stable.

The new strategic partnership seeks to further support the brand elevation strategy implemented by Valentino CEO Jacopo Venturini under the ownership of Mayhoola. Kering will become a significant shareholder with board representation. Mayhoola will remain the majority shareholder with 70% of the share capital and will continue to execute on the brand strategy.

As part of the broader partnership, Kering and Mayhoola said they would explore "potential joint opportunities in line with their respective development strategies".

François-Henri Pinault, Chairman and CEO of Kering, commented: “I am impressed with the evolution of Valentino under Mayhoola ownership and very delighted that Mayhoola has chosen Kering as its partner for the development of Valentino, a unique Italian house that is synonymous with beauty and elegance. I am very pleased of this first step in our collaboration with Mayhoola to develop Valentino and pursue the very strong strategic journey of brand elevation that Jacopo Venturini will continue to lead.”

Rachid Mohamed Rachid, CEO of Mayhoola and Chairman of Valentino, added: “Valentino is one of the ultimate Italian luxury authorities and we are very happy to welcome Kering as a strategic partner for the future development of the Maison de Couture. Under our stewardship, Valentino has strengthened its foundations as a highly desirable luxury brand and we will keep reinforcing the brand in the next chapter with Kering. We look forward to our partnership with Kering in Valentino and also in other potential opportunities to explore investments together.”