L’Oréal is “ready to consider discussions with the Armani group as set out in Mr Armani’s will”, which envisages an initial 15% stake, according to the cosmetics group’s CEO, Nicolas Hieronimus.
Nicolas Hieronimus – L’Oreal
On Sunday, L’Oréal announced the biggest acquisition in its history: the €4 billion purchase of the luxury group Kering‘s beauty division.
“The acquisition of Kering’s beauty business does not change our intention to support the Armani group, nor does it affect our financial capacity,” Nicolas Hieronimus confirms in an interview with Le Figaro.
On Tuesday, after the close of trading, the group will present its third-quarter sales, expected to show an increase of 1.5% to €10.4 billion, according to a Bloomberg consensus of analysts.
The CEO also sent a message to the Armani group, assuring the group that “this partnership with Kering strengthens L’Oréal Luxe across the beauty ecosystem and will also benefit Armani. As with each of our brands, a dedicated team will continue to manage Armani.” L’Oréal holds the Armani beauty licence, whose sales total €1 billion.
Giorgio Armani, who died on 4 September, asked his heirs to sell “a 15% stake” to a fashion giant such as LVMH, L’Oréal or EssilorLuxottica “between 12 and 18 months after the will is opened”.
The selected shareholder will then have the opportunity to take control of the group, one of the last remaining independent players in luxury, by acquiring between 30% and 54.9% of the remaining capital. If this sale – planned for three to five years after the will is opened – does not take place, the designer requested in his will that his company be listed on the stock exchange.
“It is not our role to be a fashion operator, and that has not prevented us from taking a minority stake of around 10% in Jacquemus,” notes Nicolas Hieronimus. “We could make this investment in Armani on our own or with a partner,” he adds. “I want Armani fashion to grow and its style to evolve, under the leadership of its new CEO, Giuseppe Marsocci, whom I know well.”
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