Milan: In a surprising development, the late Giorgio Armani’s will has directed his heirs to either gradually sell the iconic fashion house he established 50 years ago or consider a market listing. This revelation has triggered a competitive race to take control of one of the most renowned brands globally, marking a significant shift for a company known for its steadfast independence and deep Italian roots.
According to Radio Television Brunei, Armani, often celebrated as “King Giorgio” within the fashion industry, passed away on September 4 at the age of 91, leaving no direct offspring to inherit his empire. Industry analysts estimate the value of the Armani brand to be between 5 billion and 12 billion euros ($5.9 billion-$14 billion).
The will stipulates that preference should be given to luxury conglomerate LVMH, beauty giant L’Oreal, eyewear leader EssilorLuxottica, or another group of similar stature identified by a foundation established by Armani to preserve his legacy. This decision is made with the
consent of Armani’s business and life partner, Pantaleo Dell’Orco.
Statements from all three named companies indicate their openness to a potential deal. The mention of possible stake sales and consideration of French-listed companies as buyers has come as a surprise, considering Giorgio Armani’s historical reluctance to dilute control or list the brand publicly, despite its enduring allure amidst a global luxury market slowdown.
LVMH, controlled by French billionaire Bernard Arnault, expressed honor at being named a potential partner. “Giorgio Armani honors us by naming us as a potential partner for the exceptional fashion house he has built,” Arnault stated. He emphasized that if a collaboration were to occur, LVMH would be committed to enhancing its global presence and leadership.
EssilorLuxottica, under the control of Leonardo Del Vecchio’s heirs and already in commercial partnership with Armani, also expressed interest in a potential deal. Meanwhile, French cosmetics group L’Oreal, which maintains a l
icensing agreement with the Armani brand until 2050, announced its intention to explore the opportunity.
Both L’Oreal and EssilorLuxottica have existing commercial ties with the Armani group. However, with a market value of 240 billion euros and a reputation for being a patient and supportive minority investor, LVMH is considered by some analysts as the most likely candidate to succeed in acquiring the brand.