Fund sponsored by LVMH to buy 60% of the Italian fashion label Etro-sources By Reuters
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© Reuters. PHOTO OF THE FILE: The logo of the LVMH luxury group is seen in Paris, France, on January 28, 2020, before the 2019 results are announced. REUTERS / Christian Hartmann
MILAN (Reuters) – L Catterton, a private equity firm backed by French luxury giant LVMH, has agreed to buy a 60% stake in Italian fashion company Etro, two sources familiar with the matter said on Sunday.
The deal is valued at about 500 million euros by Etro ($ 590 million), sources said, confirming reports from Italian newspapers La Repubblica and Il Sole 24 Ore.
A spokesman for Etro declined. LVMH and L Catterton were not immediately available for comment.
In April, a source close to Reuters told Milan-based luxury brand L Catterton that it was examining a statement of interest from a partnership created by a partnership between Catterton, LVMH and billionaire owner Bernard Arnault.
The four children of Gerolamo Etro, who founded the company in 1968, will continue as shareholders with a 40% stake and will own Etro real estate and directly operated stores, one source said.
L Catterton recently bought German sandal manufacturer Birkenstock.
LVMH, which includes the Bulgarian jeweler, which owns an Italian label chain, raised its stake in Italian luxury shoemaker Tod’s to 10% in April.
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