French luxury group Kering to buy 30% stake in Valentino for 1.7 billion euros cash

By COLLEEN BARRY
AP Business Writer

MILAN (AP) — French luxury conglomerate Kering has reached a cash deal to purchase a 30% stake in Italian fashion house Valentino for 1.7 billion euros from a Qatari investment firm. With the purchase, Kering is seeking to shore up its revenue stream as it struggles to turn around former powerhouse Gucci. Kering on Thursday reported first-half revenues of 10.1 billion euros, up 2%, with Gucci sales stagnate. Kering has the option to buy 100% of Valentino no later than 2028 under the terms of the deal. The partnership could lead to the Qatari investment firm, Mayhoola, becoming a shareholder in Kering, as well as other potential “joint opportunities.”