Almost 30% of the Valentino Fashion Group – founded by 75-year-old Valentino Garavani – has been purchased by private equity firm Permira for 782 million euros. The shares were sold by members of Italy’s Marzotto family. Permira is now the largest investor in Valentino and has said it is looking to buy a larger stake. Under Italian law if it owns above 30% it has to launch a full takeover.
Valentino includes brands such as Germany’s biggest clothing maker Hugo Boss and Marlboro Classics. Permira reportedly sees this as a possible stepping stone to more acquisitions in the luxury goods sector. It beat out a rival private equity group Carlyle of the US which was also interested in taking a stake in one of the world’s top fashion houses.