The fashion house was founded by Valentino Garavani in 1960 and is one of the leading luxury houses, specialising in ready-to-wear, leather goods and accessories.
The company operates a network of 211 directly operated stores in more than 25 countries. In 2022, it recorded revenues of €1.4bn.
The agreement is part of a broader strategic partnership between Kering and Mayhoola, which could make Mayhoola a shareholder in Kering.
Kering also has the option to acquire 100% of the share capital of Valentino no later than 2028.
The deal is subject to clearance by the relevant competition authorities and is expected to close by the end of 2023.
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Kering chairman and CEO François-Henri Pinault said: “I am impressed with the evolution of Valentino under Mayhoola ownership and very delighted that Mayhoola has chosen Kering as its partner for the development of Valentino, a unique Italian house that is synonymous with beauty and elegance.
“I am very pleased of this first step in our collaboration with Mayhoola to develop Valentino and pursue the very strong strategic journey of brand elevation that Jacopo Venturini will continue to lead.”
Following the acquisition, Kering will become a significant shareholder with Board representation while Mayhoola will continue to own a controlling stake of 70% in the business.
The partnership will also support the brand elevation strategy implemented by Valentino CEO Jacopo Venturini under the ownership of Mayhoola.
Mayhoola CEO and Valentino chairman Rachid Mohamed Rachid said: “Under our stewardship, Valentino has strengthened its foundations as a highly desirable luxury brand and we will keep reinforcing the brand in the next chapter with Kering. We look forward to our partnership with Kering in Valentino and also in other potential opportunities to explore investments together.”