Control of the Etro group passes to L Catterton, a private equity fund headed by Bernard Arnault’s French luxury giant LVMH. Repubblica and Il Sole 24 Ore report it. The operation provides for the transfer of 60% of the Italian group to private equity for an overall valuation of the Milanese fashion house of half a billion euros. The negotiations had started at the beginning of the year. The Etro family will remain the owner of 40% and of all the properties used in the business, such as the shops.
The negotiations, Il Sole 24 ore writes, began at the beginning of the year, since the Etro group needs a capital injection: the Covid crisis has in fact impacted heavily on the margins of the entire luxury and fashion sector and also on the financial statements of the Milanese group.
The company was founded in the late 1960s by Gimmo Etro and is still owned today by the second generation of the family: sons Jacopo, Kean, Veronica and Ippolito.