Kering SA agreed to buy a 30% stake in fashion house Valentino for €1.7 billion ($1.87 billion) in cash as growth at Gucci, its biggest brand, continues to sputter.
The French company has the option to purchase the rest of Valentino from its owner, Qatar’s Mayhoola, before the end of 2028, the groups said Thursday. The deal is part of a strategic partnership that could lead to Mayhoola taking a stake in Kering, they said.
Kering has struggled to keep pace with luxury rivals, especially LVMH, amid a boom in the fashion business that’s helped transform the bigger French firm into the most valuable company in Europe. Last month, Kering agreed to buy perfume maker Creed from funds controlled by BlackRock Inc. and Chairman Javier Ferran.
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