Wednesday, July 11, 2012

Valentino confirms takeover talks

Valentino is being sold!!! The Italian fashion house could sell for as much as $930 million to an unknown buyer.

After losing money in 2009 under the Permira private equity firm, the house returned to profit in 2011. Co-creative directors Maria Grazia Chiuri and Pier Paolo Piccioli always kept a noticeable touch of Valentino in their modern designs, slowly and steadily gaining critical acclaim for their lovely collections. The brand’s revenues increased by 18% in 2011 under Chiuri and Piccioli.

"Valentino has seen increasing interest from a number of potential buyers," said Stefano Sassi, chief executive of Valentino Fashion Group and the Valentino fashion house, in a statement obtained by AFP on Monday. “The outstanding work and stylistic vision of creative directors Maria Grazia Chiuri and Pier Paolo Piccioli and the constant growth of [the] company’s results have generated great attention towards the brand.”

Sassi also added: "An exclusivity has been granted to one of the potential buyers, who expressed interest in the long term potential of the brand, and it is expected to expire in July."

Qatar's royal family is believed to be the mystery buyer; However, Puig was also interested in purchasing Valentino at one point. The price tag for the label is reported to be $850-930 million {£550-600 million (pounds), €700-755 million (euros)}.

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