Qatari royal family buys iconic Italian fashion house Valentino for $857 mn

Mayhoola for Investments S.P.C, an investment vehicle of the Qatari royal family, has acquired iconic Italian fashion house Valentino Fashion Group SpA for €700 million ($857 million), making it one of the biggest acquisitions of a leading European designer brand by a Middle East investor.

Valentino did not disclose the identity of the buyer, but British media recently reported that Qatar's royal family was in talks to buy the brand for about £550-600 million.

Valentino that once made dresses for Sophia Loren, is 80 per cent owned by London-based private equity fund Permira and the remaining 20 per cent by Italian textile giant Marzotto Group.

Valentino chief executive Stefano Sassi said he was "delighted" with the acquisition. "During the past few years, despite swings in the luxury markets, the company has operated with great intensity and remained focused on maximising the potential of the Valentino brand.''

"This effort should drive a 60 per cent increase in revenues from 2009 to 2012. Our new shareholder will help us to reach our full potential," he said.

Milan-based Valentino was founded in 1960 by Paris-trained Valentino Garavani. It operates in over 70 countries and has more than 700 single-brand boutiques and 112 directly managed shops.
 
Valentino, whose current clients include Hollywood actresses Jennifer Aniston, Keira Knightley and Cameron Diaz, became famous after Valentino designed the wedding dress for Jacqueline Onassis in 1968.