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 values Etro at about 500 million euros ($ 590 million), the sources said, confirming reports in Italian newspapers La Repubblica and Il Sole 24 Ore.
An Etro spokesperson declined to comment. LVMH and L Catterton were not immediately available for comment.
In April, a source close to the matter told Reuters that the Milan-based luxury brand was considering an expression of interest from L Catterton, an investment firm born out of a partnership between Catterton, LVMH and its billionaire owner Bernard Arnault.
The four sons of Gerolamo Etro, who founded the company in 1968, will remain as shareholders with a 40% stake and will continue to own Etro’s real estate and directly operated stores, one of the sources said.
L Catterton recently bought German sandal manufacturer Birkenstock.
LVMH, which owns a number of Italian brands, including jeweler Bulgari, also increased its stake in Italian luxury shoemaker Tod’s to 10% in April.
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