Luxury conglomerate Kering and Mayhoola, the owner of Valentino, have jointly announced a postponement of Kering’s planned full acquisition of the Italian fashion house. This decision defers the option for Kering to acquire the remaining 70% stake in Valentino from 2028 to 2029, with Mayhoola’s put options also shifted to 2028 and 2029. The move comes as both companies navigate significant transitions and market challenges.
Key Takeaways
- Kering’s option to acquire the remaining 70% of Valentino is extended to 2029.
- Mayhoola’s put options are postponed from 2026/2027 to 2028/2029.
- The deal is part of a broader strategic partnership that could see Mayhoola become a Kering shareholder.
- Valentino is undergoing a leadership change and facing commercial challenges with new creative direction.
- Kering is also addressing its own financial performance and debt levels.
Strategic Partnership and Deal Deferral
The initial agreement, which saw Kering acquire a 30% stake in Valentino in 2023, included an option for the full takeover by 2028. This deadline has now been pushed back by a year. The postponement affects Mayhoola’s put options, originally set for 2026 and 2027, now deferred to 2028 and 2029. Despite the delay, other terms of the agreement remain unchanged. This strategic partnership aims to support Valentino’s long-term development, with the possibility of Mayhoola becoming a shareholder in Kering.
Valentino’s Current Landscape
The decision to postpone follows the appointment of Riccardo Bellini as Valentino’s new CEO. The luxury house is currently navigating a challenging period, with early collections from creative director Alessandro Michele not yet achieving significant commercial success. Valentino’s sales saw a 2% decrease to €1.31 billion in 2024, with EBITDA down 22% year-on-year to €246 million. The deferral may provide Mayhoola with an opportunity to sell its remaining stake at a more favourable valuation once the brand recovers.
Kering’s Internal Adjustments
Kering itself is undergoing a period of adjustment. The group reported a 15% drop in sales to €3.7 billion in the second quarter and has seen its debt rise to €9.5 billion by the end of the first half of 2025. Incoming CEO Luca de Meo has identified deleveraging as a primary objective. Postponing the Valentino acquisition could allow Kering to focus on strengthening its financial position and reducing debt before proceeding with the significant investment.
Sources
- Kering and Mayhoola postpone Valentino deal, Vogue Business.
