An IPO is preferred by Armani’s successors over a sale to a major industry player
The heirs of the late designer Giorgio Armani, who now control the fashion empire that bears his name, are leaning toward a future IPO rather than a sale to a big player in the sector. While exploring an initial operation that would involve the sale of a minority stake, two people familiar with the matter told Reuters.
Armani, who died last year at the age of 91, stipulated in his will that his heirs must sell around 15% of the company within 12 to 18 months after his death. Followed by the disposal of an additional stake of between 30% and 54.9%, or an IPO.
Bankers and advisors consulted by Reuters value the Armani group between 5,000 and 7,000 million euros. Which would make any possible sale or IPO one of the largest operations in the luxury sector in the last decade.
In his will, the designer explicitly mentioned long-standing partners – such as L’Oréal and the glasses manufacturer EssilorLuxottica – as well as the luxury giant LVMH, as preferred buyers. Without ruling out other players in the sector of «equal standing», as stated in the document.
One of the sources said that the Italian fashion house is not under any financial pressure that would force it to sell urgently. However, there are already conversations with actors in the sector for the initial sale of that 15% – scheduled for March 2027. In order to comply with the testamentary provisions -, indicated the two sources.
The heirs are inclined to distribute this initial participation between two or more buyers, they added.
L’Oréal and EssilorLuxottica potential bidders
Options for the second stage of the process are kept open by splitting the share rather than selling it to a single interested party. This preserves flexibility for the family, which prioritizes an initial public offering (IPO), by preventing any one strategic partner from presenting themselves as the front-runner for a possible sale, according to one of the people.
The will states that an IPO must occur between three and eight years after Armani’s death. According to two persons acquainted with the matter, the most active potential bidders at this point are L’Oréal and EssilorLuxottica, both of whom are interested in acquiring a stake to protect their long-standing licensing deals for the Armani brand’s fragrances and eyewear.
This 15% equity stake is entitled to a seat on the board of directors under the terms of the will. If the stock were split among multiple investors, it is still unclear how this board representation would be managed.
L’Oréal, EssilorLuxottica, and the Giorgio Armani Group all declined to comment. LVMH was unavailable for comment right away.
