Private equity firm backed by French luxury giant LVMH, L Catterton has agreed to buy a 60 per cent stake in Italian fashion company Etro. The deal values Etro at about €500 million.
Etro said in a statement that L Catterton was taking a majority stake in the company, while the Etro family would retain a significant minority interest. Gerolamo Etro, who founded the company in 1968, will be the chairman and the deal is set to be closed by the end of the year.
In April, the Milan-based luxury brand considered an expression of interest from L Catterton, an investment firm born out of a partnership among Catterton, LVMH and its billionaire owner Bernard Arnault.
One of the sources said Etro’s four children would stay on as shareholders with a 40 per cent stake and would remain owners of Etro’s real estate property and directly operated stores.
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 per cent in April