The founding family of Italian fashion house Etro has sold the minority stake it still owned in the brand to a group of investors including Turkish group RAMS Global, the company said on Friday.
L Catterton, a private equity firm backed by French luxury giant LVMH, will remain Etro's majority owner and "will continue to actively support the brand's long-term growth strategy," Etro added, according to Reuters.
The new investors comprise also Italian fashion group Swinger International and small private equity firm RSI.
In addition to buying the stake, they all subscribed to a capital increase that will lower L Catterton's holding in Etro to between 51% and 55% from around 65%.
When including both the acquisition and the capital increase, the deal is worth around 70 million euros ($82 million), two sources close to the matter said. Etro did not disclose financial details.
Chief Executive Fabrizio Cardinali will remain at the helm, while Faruk Bülbül, representing RAMS Global, will become chairman of the board.
L Catterton bought a 60% stake in the brand known for its paisley motif four years ago, and it slightly increased the holding over the years.
The company, founded by Gimmo Etro in 1968, has been struggling with its turnaround. Last year it posted a net loss of 23 million euros with net revenues declining to 245 million euros from 261 million euros, according to filings with the local chambers of commerce reviewed by Reuters.
Rothschild advised L Catterton and the Etro family on the deal.
Rothschild had been hired in 2024 to look for a new investor who could buy all or part of the Etro fashion group, sources had previously told Reuters.
