Billionaire Italian Family Agnelli Buys Up New Stocks In French Luxury
French shoe and bag maker Christian Louboutin has sold nearly a one quarter stake of their company to Italy’s billionaire Agnelli family for $640 million. The deal will not only bring new income in, but a fresh perspective for the luxury manufacturer.
Exor, the family’s holding company, announced the purchase on Monday, claiming 24% stake as hopes are that China and e-commerce will be lucrative advancements set for the company. Exor will also be nominating two of Louboutin’s seven board members.
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John Elkann is the man behind the Agnelli family’s investment company and has begun to diversify the family’s investments in recent years. Elkann inherited leadership for Italy’s most famous industrial family when he was a 28-year-old with limited work experience. It was his success in saving Fiat from nearly going bankrupt that solidified his spot at the head of the proverbial table. His achievements have been reflected in his outward persona as he started as a soft-spoken figure who rarely gave public comments, before becoming the beacon of investment strategy he’s seen as today.
Most estimates place their worth at over $13.5 billion, although nobody can say for sure how the wealth is distributed amongst its members. Much like her father before her, Andrea Agnelli has acted as the president of Juventus football club. Besides Exor, the family also owns the car brand, Fiat, and has many connections to others including Ferrari.
With a rich history in the automotive sector, teaming up with Louboutin, known for its signature red-soled women’s shoes, sends the family ties into a new direction. It also follows Exor’s recent $94 Million investment in the Chinese luxury brand Shang Xia.
Christian Louboutin began in 1991 and, since then, has evolved into a massive 150 store empire, stationed in 30 countries. While many clothing companies are facing growing pains during the COVID years, Louboutin is one that intends to come out on top.
The new deal pushes them into deeper territory and over international waters. Although the details are said to be set, everything is expected to be finalized by the second quarter of 2021.
Sources: Bloomberg, Jalopic, Wall Street Journal
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