Italian luxury label, Etro, known for its iconic prints, has announced a strategic partnership with L Catterton Europe, the largest global consumer-focused private equity firm. As part of this agreement, L Catterton Europe will acquire a majority stake of approximately 60% in Etro, while the Etro family will retain a significant minority holding. Founder Gerolamo Etro will also take on the role of Chairman of the company. The transaction is expected to be completed by the end of the year, with Etro valued at around €500 million ($590 million).

Originally established in 1968 as a textile firm, Etro has expanded its offerings over the years to include a wide range of products such as womenswear, menswear, accessories, beauty/fragrances, and home goods. The brand is currently available through luxury retail stores, department stores, and upscale e-commerce sites. By entering into this partnership with L Catterton, Etro aims to leverage the firm’s extensive investment expertise, deep category knowledge, valuable consumer insights, and strategic relationships with LVMH.

L Catterton will play a crucial role in helping Etro enhance its brand strategy and expand its customer base, with a specific focus on attracting younger consumers by modernizing its style and exploring new product categories. Moreover, this collaboration will enable Etro to strengthen its digital presence and tap into promising opportunities in the Asian market.

Gerolamo Etro, the founder of the brand, expressed his pride in Etro’s accomplishments and believes that the partnership with L Catterton will contribute to its continued growth and solidify its position as a highly esteemed luxury fashion house. With nearly 55 years of experience, the Etro family has great confidence in the shared vision and approach to partnership with L Catterton.

The alliance between Etro and L Catterton marks an exciting new chapter for the brand, paving the way for sustained success in the luxury fashion industry. By leveraging the expertise and resources of L Catterton, Etro aims to establish itself as one of the leading high-end brands across various product categories, while staying true to its Italian heritage. With a strong focus on innovation, expansion, and global appeal, Etro is poised to embrace the future and continue delighting consumers around the world.

Links:
1. Etro – Official Website
2. L Catterton – Official Website