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Etro Announces Strategic Partnership with L Catterton Europe – Stocks News Feed

MILAN and GREENWICH, Conn., July 18, 2021 /PRNewswire/ — Etro (“Etro” or the “Company”), the global luxury fashion house, today announced that it has entered into a binding agreement to partner with L Catterton, the largest global consumer-focused private equity firm. Under the terms of the agreement, L Catterton Europe will acquire a majority stake in the Company, while the Etro family will retain a significant minority. Etro Founder Gerolamo Etro will be appointed as Chairman of the Company.

Founded in Milan in 1968 as a textile company, Etro is widely known for its iconic paisley motif and bold patterns inspired by travel, and has a rich heritage of interpreting iconic aesthetic beauty on precious fabrics with a distinctive Italian footprint in terms of both style and craftsmanship. The Company today represents an expanding business with a number of diversified product categories, including women’s and men’s fashion, accessories, beauty and fragrances, and home goods. For nearly 55 years, the Etro family has owned the Company and established its unique, family-driven brand DNA, which has resulted in notable customer recognition. With a strong distribution footprint globally, Etro has a presence in approximately 140 retail stores in high-end shopping locations and is a notable fixture among many of the most prestigious luxury department stores and e-retailers across the globe.

By leveraging L Catterton’s deep investment expertise, category knowledge, consumer insights, and strategic relationships with LVMH, Etro will be poised for significant growth to become one of the leading high-end brands across product categories. With a track record of over 30 years of partnering with luxury and fashion brands across the globe, L Catterton will support Etro in enhancing its brand strategy to grow its customer base and reach the younger generations of consumers by continuing to interpret its style in new, modern ways, while expanding into new categories and further enhancing its Italian roots. The partnership will also allow Etro to enhance its digital presence and drive global expansion, with a focus on the significant opportunity in Asia.

“My family and I take great pride in having established Etro as a strong luxury brand that resonates with consumers around the globe,” said Etro Founder and Chairman Gerolamo Etro. “L Catterton has a shared vision and a unique appreciation for our business, and the firm takes the same approach to partnership our family does. 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. We are thrilled to work with L Catterton’s team as they bring their extensive knowledge of the fashion category, along with a proven track record of supporting the international development of distinctive brands, allowing Etro to reach new heights.”




“We are honored 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 the Company’s evolution,” said Luigi Feola, Managing Partner, Head of Europe at L Catterton. “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.”

Rothschild & Co, PwC TLS, Pedersoli Studio Legale and Studio Guasti – Studio Legale Associato advised Etro on the deal.

Bain & Company, PwC Deals, PwC TLS and LMCR / Studio Legale advised L Catterton.

The transaction is expected to close by the end of the year. Terms of the transaction were not disclosed.

About Etro

Founded by Gerolamo Etro in 1968 and headquartered in Milan, Etro is today a globally known luxury brand boasting global reach and consumer recognition. Etro’s global footprint relies on a widespread multi-channel retailing strategy that makes the brand’s offering available worldwide, starting with approximately 140 brand’s flagship stores in over 58 countries across Europe, the United States, Russia, Middle East and APAC. Milan, London, Paris, New York, Beijing, and Tokyo are among the main capitals where Etro has established its strong presence through prestigious real estate locations positioned on the paramount streets of the luxury shopping map. Etro’s distribution network further reaches with approximately 20 travel retail doors, extending the brand’s purchase experience to major international hubs, and by an attentive wholesale selection of leading department stores and multi-brand boutiques. In addition, online plays an increasingly pivotal role in Etro’s direct-to-consumer journey across the continents, with brand’s directly operated e-commerce currently operating throughout Europe, the United States, and Japan, while simultaneously developing exclusive collaborations with the most influential digital marketplaces internationally.

About L Catterton

With approximately $30 billion of equity capital across its fund strategies and 17 offices around the world, L Catterton is the largest global consumer-focused private equity firm. L Catterton’s team of nearly 200 investment and operating professionals partners with management teams around the world to implement strategic plans to foster growth, leveraging deep category insight, operational excellence, and a broad partnership network. Since 1989, the firm has made over 250 investments in leading consumer brands. For more information about L Catterton, please visit lcatterton.com.

Press contacts

Etro
Carlo Mengucci | [email protected] | +39 335 5769912
Federico Steiner | [email protected] | +39 335 424278
Marina Riva | [email protected] |+39 347 2975426

L Catterton
Andi Rose / Julie Hamilton / Erik Carlson
Joele Frank, Wilkinson Brimmer Katcher
+1 212-355-4449

View original content:https://www.prnewswire.com/news-releases/etro-announces-strategic-partnership-with-l-catterton-europe-301336069.html

SOURCE L Catterton

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