Italian luxury fashion house Etro has entered a new phase of growth after the founding family sold a minority stake to a consortium of overseas industrial investors, the company said Wednesday.
The transaction leaves global private equity firm L Catterton — backed by luxury group LVMH — as Etro’s largest shareholder, with its control unchanged. The newly formed investor group, comprising Rams Global, Mathias Facchini of Swinger International and Giulio Gallazzi of SRI Group, acquired the Etro family’s remaining minority stake under an agreement with L Catterton. Financial terms were not disclosed.
According to industry sources, Etro’s valuation in the latest transaction was higher than at the time of L Catterton’s initial investment, reflecting progress in strengthening brand competitiveness as well as improvements in governance and management systems in recent years.
Management continuity will be maintained, with CEO Fabrizio Cardinali remaining in his role and continuing to lead the execution of Etro’s mid- to long-term growth strategy alongside L Catterton and the new investors. Faruk Bulbul, chief executive of Rams Global, has been appointed chair of the board.
L Catterton said it will continue to actively support Etro’s growth strategy as the controlling shareholder, while the new industrial investors plan to back the brand’s global expansion and diversification from a long-term perspective.
“Etro has built strong growth momentum by reinforcing its brand and operational foundations,” said Luigi Feola, managing partner of L Catterton Europe. “Together with new industrial partners, we will further accelerate Etro’s international growth.”
Rams Global is a global lifestyle group with more than three decades of experience in luxury residential and hotel development across Europe and the Middle East. The company has recently expanded into luxury brand investments and is working with Etro on a branded residential project, Etro Residences Istanbul. Swinger International is an Italian fashion group that operates women’s ready-to-wear brand Genny, while SRI Group is a private equity firm focused on small and medium-sized enterprises.
Market observers view the deal as a strategic investment rather than a purely financial transaction, citing expectations of synergies between Etro’s brand identity, its expansion into lifestyle categories, and collaborations across residential, hospitality and retail spaces.
khnews@heraldcorp.com
