The latest Italian luxury brand to be bought by a foreign investor
The Qatari royal family has acquired full ownership of the iconic Italian fashion house Valentino Fashion Group SpA., for 700 million euros ($857.46 million), marking one of the most prominent purchases of a European top designer brand by an emerging market investor. The exact details of the transaction have not been disclosed, although it has also been revealed that the M Missoni line is also part of the deal.
Valentino is the latest Italian luxury brand to be bought by a foreign investor, a sign of the resilience of the sector even as Italy sinks into a deep recession.
The Qataris, who also own London’s Harrods department store, have been one of the world’s most active investors with assets ranging from stakes in German sports car maker Porsche to shares in British bank Barclays.
High-end Italian fashion house Valentino is notably a favorite among Hollywood starlets and royalty. With its trademark, bright red gowns and dramatic shows, the Italian fashion house has remained true to its creative principles and vision despite recent economic troubles. In the wake of luxury’s rise, the Qataris will be pressured to continue that legacy, given their familiarity with the luxury sector.