L Catterton, a private equity firm backed by French luxury giant LVMH, has agreed to buy a 60% stake in Italian fashion company Etro, two sources familiar with the matter said on Sunday.
The deal values Etro at about $590m, the sources said, confirming reports in Italian newspapers La Repubblica and Il Sole 24 Ore.
A spokesperson for Etro declined to comment. LVMH and L Catterton were not immediately available for a comment.
In April, a source close to the matter had told Reuters that the Milan-based luxury brand was considering an expression of interest from L Catterton, an investment firm born out of a partnership among Catterton, LVMH and its billionaire owner Bernard Arnault.
Subscribe to our Newsletter to increase your edge. Don’t worry about the news anymore, through our newsletter you’ll receive weekly access to what is happening. Join 120,000 other PE professionals today.
The four children of Gerolamo Etro, who founded the company in 1968, will stay on as shareholders with a 40% stake and will remain owners of Etro’s real estate property and directly operated stores, one of the sources said.
L Catterton recently bought German sandal maker Birkenstock. LVMH, which owns a string of Italian labels including jeweller Bulgari, also boosted its stake in Italian luxury shoemaker Tod’s to 10% in April.
Source: Reuters
Can’t stop reading? Read more
Partners Group and BBVA deepen ties with new evergreen fund for Spanish private banking clients
Partners Group and BBVA deepen ties with new evergreen fund for Spanish private banking clients...
Davies powers North American growth with BC Partners-backed takeover of SCM Insurance Services
Davies powers North American growth with BC Partners-backed takeover of SCM Insurance Services...
Goldman Sachs-backed Clio invests $1bn in vLex acquisition, lifts valuation to $5bn
Goldman Sachs-backed Clio invests $1bn in vLex acquisition, lifts valuation to $5bn Clio has...