Tugba Sabanoglu
Research lead covering Non-food CG & Retail
M&A in the luxury goods sector - statistics & facts
Luxury companies consolidate on their way to expansion. In an industry characterized by high competition and the need to stay relevant, mergers and acquisitions become a viable choice for luxury groups to branch out to new geographical markets or expand their target audience. Today, the diverse portfolio of the large luxury conglomerates like LVMH, Kering, and Richemont, owes it to brand consolidations, big and small. In 2022, there were 292 M&A deals struck in the global fashion and luxury goods industry. The number marked the highest M&A activity observed over the past five years. The average value of deals was the highest for the apparel and accessories in the personal luxury goods category, at approximately 1.5 billion U.S. dollars in the same year.
Another high profile M&A deal of 2023 came from the French conglomerate Kering. Backed by the Qatari investment fund Mayhoola, Kering acquired a 30 percent stake at the Italian fashion house Valentino in July 2023. The agreement included an option to increase its shareholding to 100 percent in the Italian fashion brand by 2028. Kering currently manages internationally renowned brands Gucci, Yves Saint Laurent, Balenciaga, and Bottega Veneta brands in the couture category.
Hottest luxury M&A deals of the year
In 2023, the M&A buzz in the luxury goods industry only ramped up further and went bigger. Later in the year, the U.S.-based luxury group Tapestry Inc. finalized the acquisition of Capri Holdings, the parent company that owns Versace, Michael Kors, and Jimmy Choo. The American group now consolidated six brands in its portfolio with a strong focus on leather goods including Coach, Kate Spade and Stuart Weitzman. The global net sales of Tapestry, Inc. in recent years have fared around 6.6 billion U.S. dollars.Another high profile M&A deal of 2023 came from the French conglomerate Kering. Backed by the Qatari investment fund Mayhoola, Kering acquired a 30 percent stake at the Italian fashion house Valentino in July 2023. The agreement included an option to increase its shareholding to 100 percent in the Italian fashion brand by 2028. Kering currently manages internationally renowned brands Gucci, Yves Saint Laurent, Balenciaga, and Bottega Veneta brands in the couture category.
