Armani heirs favour IPO over sale to industry player, sources say
MILAN: The heirs of late designer Giorgio Armani, who now control the eponymous fashion empire, favour an eventual stock market listing over a sale to a large industry player as they pursue an initial minority stake deal, two people familiar with the matter told Reuters . Armani, who died at 91 last year, stipulated in his will that his heirs should sell around 15% of the company between 12 and…
MILAN - The heirs of late designer Giorgio Armani, currently in control of his fashion empire, prefer an eventual stock market listing over a sale to a major industry player, according to sources cited by Reuters. Giorgio Armani, who passed away at the age of 91, had stipulated in his will that his heirs should sell approximately 15% of the company between 12 and 18 months posthumously, followed by the sale of an additional 30% to 54.9% stake or a listing on the stock market.
Various bankers and advisers consulted by Reuters have valued the Armani group between €5 billion and €7 billion, suggesting that any future sale or flotation would rank among the most significant luxury industry transactions of the past decade.
In his will, the deceased mentioned prominent licensing partners L'Oréal and eyewear manufacturer EssilorLuxottica, alongside luxury conglomerate LVMH, as preferred buyers. However, the will did not exclude other industry competitors of "equal standing". One source indicated that the Italian fashion company is not under any urgent financial pressure to sell assets. Conventional talks are ongoing with industry players regarding the initial 15% stake sale, expected by March 2027 to meet the terms of the will.
The heirs plan to distribute the initial stake among two or more buyers, rather than selling it all to a single bidder. This strategy preserves flexibility, as it prevents one strategic party from emerging as the frontrunner for any eventual sale, and allows the family to maintain control over future negotiations. The IPO should occur within three to eight years following Armani's death, as outlined in the will.
L'Oréal and EssilorLuxottica, who are interested in acquiring a stake to safeguard their existing licensing agreements for Armani fragrances and eyewear, are among the most engaged potential buyers at this stage. The 15% stake collectively includes one board seat; however, it remains unclear how this representation would be handled if the holding were divided among several investors. Giorgio Armani group, L'Oréal, EssilorLuxottica, and LVMH declined to comment on the matter.
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