Made in Italy brands lead Christmas M&A activity

Milan - The year concludes with two significant financial transactions involving two prominent Made in Italy brands: Etro and Golden Goose. Golden Goose has been acquired by the Chinese company Hsg, an international venture capital and private equity firm, which now holds a majority stake in the group. Meanwhile, Temasek, a global investment company, and a fund managed by its wholly-owned asset manager, True Light Capital, have taken a minority stake. Etro, on the other hand, has seen a consortium of industrial investors acquire the minority stake previously held by the Etro family. This group includes the Turkish company Rams Global, Mathias Facchini of Swinger International, and the banker Giulio Gallazzi through Sri Group, in agreement with L Catterton. L Catterton remains the majority shareholder and will continue to actively support the brand's long-term growth strategy.

The news, which broke last week, holds multiple implications for the Made in Italy label. The sector has been under scrutiny for months due to incidents of labour exploitation. Additionally, Italian fashion associations have raised a series of issues, advocating for better protection and defence against fast fashion.

From a 'glass half full' perspective, these two transactions, though different in nature, once again demonstrate the appeal of Italian brands. They highlight the ability of designers to create an enduring dream, fostering its growth through creativity and craftsmanship.

On the other hand, from a 'glass half empty' viewpoint, the transfer of ownership of Made in Italy labels to foreign entities is a cause for concern. This is particularly true as the history of such acquisitions is extensive. Year after year, the list of Italian brands acquired by European and Eastern companies grows, as does the number of founding families who no longer hold any stake in the companies bearing their names.

Etro's history dates back to the late 1960s

Etro is a historic Italian brand, quintessentially Milanese. The brand was founded in Milan in 1968 by Gerolamo "Gimmo" Etro. A Milan native, Gimmo Etro started the business as a producer of high-quality textiles. A stylistic turning point came in 1981 with the introduction of the Paisley motif, a teardrop design of Mesopotamian origin, which would become the brand's unmistakable visual identity.

During the 1980s and 1990s, the company expanded vertically. This included the introduction of leather goods; the launch of a home collection; the debut of fragrances; and finally, the consolidation of its ready-to-wear line, led by Gimmo's four children: Kean, Veronica, Jacopo and Ippolito.

For decades, Etro remained a pure family business. However, to address the challenges of globalisation and generational turnover, the family sought a financial partner. In 2021, the private equity fund L Catterton, backed by the luxury conglomerate LVMH Moët Hennessy Louis Vuitton (LVMH) and the Arnault family, acquired a majority stake.

The Etro family retained the remaining 32.8 percent. Following the transaction announced last week, the founding family is no longer part of the shareholding structure. The stake held by Gefin has been transferred to a consortium of investors, including Rams Global, Mathias Facchini of Swinger International, and the banker Giulio Gallazzi through Sri Group. L Catterton remains the majority shareholder and will continue to actively support the brand's long-term growth strategy. Rothschild & Co acted as the advisor for the company and its two shareholders, Gefin (the Etro family's financial holding company) and L Catterton, throughout the transaction.

Golden Goose was founded in Venice in 2000

The story of Golden Goose, by contrast, dates back 'only' to 2000. Golden Goose Deluxe Brand was founded in Venice in 2000 by Alessandro Gallo and Francesca Rinaldo. The young creative couple had the vision to combine Venetian craftsmanship with a 'street' and 'distressed' aesthetic, transforming the sneaker from a sports shoe into a luxury item.

In 2013, the Italian fund Dgpa acquired control of the brand. Two years later, it was sold to the Belgian fund Ergon Capital. In 2017, the company was acquired by Carlyle Group for approximately 400 million euros, and in 2020, Permira took over the brand for a figure close to 1.28 billion euros.

In June 2024, Golden Goose was on the verge of listing on the Borsa Italiana (Euronext Milan). The IPO was subsequently postponed due to volatility in the European markets, making it one of the most closely watched financial cases of the year.

On December 19, Golden Goose Group spa announced that Hsg, an international venture capital and private equity firm, will acquire a majority stake in the group. Temasek, a global investment company, and a fund managed by its wholly-owned asset manager, True Light Capital, will take a minority stake.

The financial terms of the transaction have not been disclosed, although market sources indicate the deal is valued at 2.5 billion euros. The acquisition is expected to be completed by summer 2026.

Silvio Campara will continue to lead the group as chief executive officer, alongside the current leadership team. Marco Bizzarri, currently a non-executive director on the Golden Goose board, will become non-executive chairman.

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