US-based private equity firm L Catterton has agreed to buy a majority stake in Italian luxury fashion house Etro.

L Catterton, which is backed French luxury firm LVMH, will acquire a 60% stake in Etro.

The companies have not disclosed the financial terms of the transaction, but Italian newspapers and insiders said that the deal values Etro at around €500m ($590m).

Etro operates across a range of product categories, including women’s and men’s fashion, accessories, beauty, fragrances and home goods.

The brand is available in around 140 retail stores in high-end shopping locations and luxury department stores, as well as via its worldwide online marketplace.

L Catterton managing partner and Europe head Luigi Feola said: “We are honoured to welcome such a respected and iconic fashion brand into the L Catterton family and are delighted to partner with the Etro family for the next phase of [Etro’s] evolution.

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“We are confident that with our broad global network and experience building fashion brands, Etro will be well-positioned to become an international powerhouse and a leader in its category.”

The Etro family, which has owned the business for almost 55 years, will continue to hold a significant minority stake in the firm after the deal is completed.

Company founder Gerolamo Etro will also be appointed as its chairman.

Under the new owner, Etro aims to strengthen its digital presence and drive its global expansion, with a special focus on Asian markets.

Mr Etro said: “After nearly 55 years under our stewardship, we believe that together with L Catterton, Etro can enter its next chapter of growth and solidify its place as one of the great, lasting luxury houses.”

The transaction is expected to close by the end of the year.

In March, L Catterton and its affiliates, including Financière Agache, agreed to acquire a majority stake in global lifestyle brand Birkenstock.