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2d ago

Armani Will Mandates Staged Sale of Fashion House, Prioritizes LVMH, L’Oréal and EssilorLuxottica

The published will sets a phased divestment under governance concentrating voting power with Leo Dell'Orco, with the Armani Foundation acting as guardian of the brand's principles.

Italian fashion designer Giorgio Armani acknowledges applause during the presentation of Emporio Armani's Fall-Winter 2023-2024 Women's collection on February 23, 2023 during the Fashion Week in Milan.
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Italian designer Giorgio Armani poses for pictures inside his boutique in Via Condotti, in Rome, Italy, June 5, 2013. REUTERS/Remo Casilli/File Photo
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Overview

  • Heirs are instructed to sell a 15% stake within 12 to 18 months, then transfer an additional 30% to 54.9% to the same buyer within three to five years or pursue an IPO, preferably in Milan.
  • The new voting structure gives the Armani Foundation roughly 30% of votes on a 10% capital stake with veto powers on major decisions, while Leo Dell'Orco holds 40% of votes on 30% of capital.
  • Dell'Orco must approve any sale; if he is unable to do so, Silvana Armani or Andrea Camerana would have to authorize the transaction.
  • LVMH, L’Oréal and EssilorLuxottica are named as preferred buyers; EssilorLuxottica said it would carefully assess the prospect and L’Oréal said it was touched and honored, while no deal has been announced.
  • Two wills were filed with Italian tax authorities and made public by Italian media, and the Armani executive committee said the foundation will remain a guarantor of the brand’s founding principles as the process unfolds.