Etro joins LVMH’s empire: after buying Tiffany’s and Birkenstock and boosting stakes in Tod’s, how much bigger is the luxury fashion empire planning to get?

Jul 19 , 2021

Bernard Arnault, head of French multinational corporation LVMH. Photo: AFP

LVMH-backed L Catterton bought 60 per cent of Etro, valuing the brand at US$590 million; Etro plans to expand in Asia and focus on younger consumers

The private equity firm also bought Birkenstock, while LVMH boosted its stake in Tod’s and will back British designer Phoebe Philo’s eponymous label

L Catterton, the private equity firm backed by French luxury retailer LVMH, agreed to buy a majority stake in Italian fashion house Etro SPA.

The Etro family will retain a significant minority, according to a statement from the Milan-based luxury retailer founded by Gerolamo Etro, who will be chairman.

Models present creations from the Etro spring/summer 2022 men’s collection during Fashion Week in Milan, Italy, on June 20, 2021. Photo: Reuters

Financial terms weren’t disclosed. Italian newspaper Il Sole 24 Ore had reported L Catterton will buy a 60 per cent stake, which would value Etro at about €500 million (US$590 million).

L Catterton in February bought sandal maker Birkenstock. LVMH also boosted its stake in Italian shoemaker Tod’s SPA to 10 per cent in April. Etro plans to grow its customer base by attracting younger consumers, and look to expand in Asia, it said.

Designer Kean Etro poses with models from the Etro spring/summer 2022 men’s collection during Fashion Week in Milan, Italy, on June 20, 2021. Photo: Reuters

Rothschild & Co. advised Etro on the deal, while Bain & Company and PWC advised L Catterton. The transaction is expected to close by the end of the year.

Earlier this month, the conglomerate also announced backing for British fashion designer Phoebe Philo in launching her own eponymous fashion label. Known for her minimalist fashion and tenure at LVMH-owned brand Celine – which is now under the helm of Hedi Slimane, the brand born from the LVMH partnership will focus on “clothing and accessories rooted in exceptional quality and design”.