MILAN, July 18 (Reuters) – L Catterton, a non-public fairness agency backed by French luxury large LVMH (LVMH.PA), has agreed to invest in a 60% stake in Italian style firm Etro, two sources acquainted with the matter stated on Sunday.
The offer values Etro at about 500 million euros ($590 million), the resources explained, confirming experiences in Italian newspapers La Repubblica and Il Sole 24 Ore.
Etro reported in a assertion that L Catterton was getting a the greater part stake in the enterprise,though the Etro relatives would retain “a substantial minority interest”. It did not go into details and gave no monetary aspects.
Gerolamo Etro, who started the company in 1968, will be the chairman and the deal is set to be shut by the close of the yr, the statement said.
“We are thrilled to be doing the job with the L Catterton workforce who will carry their in-depth knowledge of the trend sector and an practical experience in the international advancement of crucial makes, allowing our business to reach new heights,” the firm claimed.
LVMH and L Catterton have been not right away accessible for remark.
In April, a source shut to the issue experienced instructed Reuters that the Milan-based mostly luxury manufacturer was taking into consideration an expression of curiosity from L Catterton, an expense organization born out of a partnership amongst Catterton, LVMH and its billionaire operator Bernard Arnault.
A person of the resources claimed Etro’s 4 kids would stay on as shareholders with a 40% stake and would continue to be entrepreneurs of Etro’s true estate property and specifically operated merchants.
L Catterton just lately acquired German sandal maker Birkenstock. LVMH, which owns a string of Italian labels which include jeweller Bulgari, also boosted its stake in Italian luxury shoemaker Tod’s (TOD.MI) to 10% in April.
Reporting by Silvia Aloisi Enhancing by Elaine Hardcastle and Crispian Balmer
Our Criteria: The Thomson Reuters Have faith in Principles.