Paris—Luxury conglomerate Kering SA said today it has agreed to its Sergio Rossi brand to Investindustrial, a private equity group.
Investindustrial, will get all Rossi’s industrial assets, rights and a network of more than 80 stores, according to a joint statement today. The deal will ensure the long-term development of the brand, the companies said. Bloomberg News had reported in August that Investindustrial had been in talks to acquire the struggling footwear brand.
Kering CEO Francois-Henri Pinault had said Kering was separated from the Gucci Group in half year figures in July and attributed the 10.7 million-euro ($11.7 million) net loss from discontinued operations in the period mainly to the shoemaker. Rossi CEO Christophe Melard left the brand a year ago after a run of disappointing results.
The disposal is “good news,” said Luca Solca, an analyst at Exane BNP Paribas. “Sergio Rossi has been the exception to the rule in Kering’s most positive track record of adding value to small luxury-goods acquisitions.”
Sergio Rossi began selling shoes in the brand name in l968.. The brand gained prominence in the 1970s due to a partnership with Gianni Versace to supply footwear for the designer’s runway shows.
Investindustrial also has taken stakes in Aston Martin, Flos and B&B Italia, that are growing internationally, according to senior partner Andrea Bonomi. This is “the same growth path that we are looking to achieve for Sergio Rossi,” Bonomi said in the statement.
The transaction is expected to close in the coming weeks.