MILAN, July 18 (Reuters) – L Catterton, a personal equity business backed by French luxury big LVMH (LVMH.PA), has agreed to purchase a 60% stake in Italian manner business Etro, two sources acquainted with the make any difference claimed on Sunday.
The offer values Etro at about 500 million euros ($590 million), the resources mentioned, confirming experiences in Italian newspapers La Repubblica and Il Sole 24 Ore.
Etro reported in a statement that L Catterton was having a majority stake in the business,though the Etro family would retain “a major minority desire”. It did not go into specifics and gave no financial aspects.
Gerolamo Etro, who established the corporation in 1968, will be the chairman and the offer is established to be closed by the stop of the calendar year, the statement claimed.
“We are thrilled to be doing work with the L Catterton staff who will convey their in-depth understanding of the manner sector and an expertise in the global enhancement of crucial brand names, allowing for our corporation to arrive at new heights,” the organization stated.
LVMH and L Catterton ended up not instantly obtainable for comment.
In April, a supply close to the subject had explained to Reuters that the Milan-primarily based luxury model was thinking of an expression of fascination from L Catterton, an financial investment company born out of a partnership amid Catterton, LVMH and its billionaire operator Bernard Arnault.
One of the sources stated Etro’s four children would keep on as shareholders with a 40% stake and would keep on being house owners of Etro’s actual estate residence and specifically operated suppliers.
L Catterton lately purchased German sandal maker Birkenstock. LVMH, which owns a string of Italian labels like jeweller Bulgari, also boosted its stake in Italian luxury shoemaker Tod’s (TOD.MI) to 10% in April.
Reporting by Silvia Aloisi Editing by Elaine Hardcastle and Crispian Balmer
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