The transaction is expected to close by the end of the year. The terms of the transaction have not been disclosed.
The partnership will allow Etro to enhance its digital presence and drive global expansion, with a focus on the significant opportunity in Asia, the two entities said in a joint press release.
Founded in Milan in 1968 as a textile company, Etro is widely known for its iconic paisley motif and bold patterns inspired by travel, and has a rich heritage of interpreting iconic aesthetic beauty on precious fabrics with a distinctive Italian footprint in terms of both style and craftsmanship.
For nearly 55 years, the Etro family has owned the company and established its unique, family-driven brand DNA, which has resulted in notable customer recognition. With a strong distribution footprint globally, Etro has a presence in approximately 140 retail stores in high-end shopping locations and is a notable fixture among many of the most prestigious luxury department stores and e-retailers across the globe.
By leveraging L Catterton’s deep investment expertise, category knowledge, consumer insights and strategic relationships with LVMH, Etro will be poised for significant growth to become one of the leading high-end brands across product categories.
With a track record of over 30 years of partnering with luxury and fashion brands across the globe, L Catterton will support Etro in enhancing its brand strategy to grow its customer base and reach the younger generations of consumers by continuing to interpret its style in new, modern ways, while expanding into new categories and further enhancing its Italian roots.
“After nearly 55 years under our stewardship, we believe that together with L Catterton, Etro can enter its next chapter of growth and solidify its place as one of the great, lasting luxury houses. We are thrilled to work with L Catterton’s team as they bring their extensive knowledge of the fashion category, along with a proven track record of supporting the international development of distinctive brands, allowing Etro to reach new heights,” said Etro founder and chairman Gerolamo Etro.
“We are honoured to welcome such a respected and iconic fashion brand into the L Catterton family and are delighted to partner with the Etro family for the next phase of the Company’s evolution,” said Luigi Feola, managing partner, head of Europe at L Catterton.
Rothschild & Co, PwC TLS, Pedersoli Studio Legale and Studio Guasti – Studio Legale Associato advised Etro on the deal, while Bain & Company, PwC Deals, PwC TLS and LMCR / Studio Legale advised L Catterton.
Fibre2Fashion News Desk (KD)
Italian luxury fashion house Etro has entered into a binding agreement to partner with consumer-focused private equity firm L Catterton. Under the terms of the agreement, L Catterton Europe will acquire a majority stake in Etro, while the Etro family will retain a significant minority. Its founder Gerolamo Etro will be appointed as chairman of the company.