Richemont becomes controlling shareholder of Gianvito Rossi

Richemont invests in Gianvito Rossi by becoming a controlling shareholder through a private transaction. Sources close to the deal report that the Swiss group has acquired a 70% stake. It is certain that the founder of the eponymous label, which was established in 2006, will continue to work with the company as a minority stakeholder while following the fashion house’s development in partnership with the luxury Group. Richemont filed the first quarter revenue of 5.32 billion euros ending on June 30 (see MFF of July 17).

The deal confirms long-standing rumors that many parties were interested in taking over the deluxe footwear brand generating a revenue of 99 million euros and an ebitda of 23 million euros in 2022, including Renzo Rosso’s Only the brave (Otb) Group (see MFF of June 18) and Richemont (see MFF of July 11). Although the transaction value has not been disclosed, given that Gianvito Rossi’s ebitda expected to be 30 million euros, it is likely that the brand’s valuation will exceed the 100 million euros that were rumored in recent weeks.

«Although we are a small business in the luxury industry, we still compete globally with big brands», Gianvito Rossi, the brand’s ceo and creative director, stated exclusively to MFF. «We identified, together with Richemont, the possibility of combining our ability to develop high quality, modern, and attractive products with the support of their structured Group for international retail distribution. Opening additional monobrand stores, in addition to the 36 direct stores currently established around the world, will enable us to directly reach customers globally. Global distribution at a high level is complex, therefore, it is necessary to rely on a strategic partner. We chose Richemont because we share a common vision on product quality and the desire to preserve Italian know-how and tradition in our territory».

The Gianvito Rossi brand is produced in the San Mauro Pascoli footwear district, known for housing top brands. The brand is present with a showroom and offices located on Via Santo Spirito in Milan,

«This agreement represents a partnership between two families, the Rupert family, which leads Richemont, and the Rossi family,” Philippe Fortunato, ceo of fashion & accessories maisons at Richemont, added to MFF. «There is a strong alignment between the two families regarding their strategy, culture, values, respect for family, and transmission of heritage. It is crucial to convey these emotions in the product to win over the costumer. We discovered a top-level perfect product in Gianvito Rossi with internal knowledge to protect. Given the shift of the global customer towards more elegant and quality products, style and good taste are now even more fundamental».

Fortunato specified that “at the moment, there will be no production synergies for Richemont’s other brands, which include fashion labels like Chloé, Alaïa, AZ Factory, and Delvaux. In reality, we are purchasing a brand and not just a production capacity. Our goal is to achieve an even higher level of success by executing at the right time. Revenue growth will be a result of achieving our goals and not the primary objective. Our ultimate aim is to create even more appealing and high-quality products that inspire customers around the world».

Currently, Gianvito Rossi is primarily distributed in Europe, the Us, and the Middle East. However, the potential in Asia remains unexpressed. «One of the initial steps would be to bring the market in Asia to the same level as the other regions,» Rossi concluded.

Rothschild & Co acted as an advisor to Gianvito Rossi in the transaction.

As specified in the official note «the transaction has no material financial impact on Richemont’s consolidated net assets or operating result for the year ending 31 March 2024. The performance of Gianvito Rossi will be reported under the ‘Other’ business area, which is mostly composed of the fashion & accessories Maisons. Completion remains subject to certain customary conditions and regulatory approvals”. (All rights reserved)