EssilorLuxottica Eyes Stake in Giorgio Armani Following Founder's Will

Eyewear industry giant EssilorLuxottica SA is reportedly poised to acquire a significant stake in Italian fashion house Giorgio Armani SpA. Following the recent passing of its esteemed founder, Giorgio Armani, EssilorLuxottica is said to be prepared to purchase a 5% to 10% share in the company. This information was initially reported by Il Sole 24 Ore, citing undisclosed sources, indicating a potential major shift in the ownership landscape of the iconic luxury brand.

According to the newspaper’s Saturday report, any acquisition by EssilorLuxottica would strictly involve a passive investment, with the company taking no active management role within Armani nor securing representation on its board. When approached for comment by Bloomberg regarding these reports, spokespeople for both EssilorLuxottica, the world’s largest eyewear group, and Giorgio Armani SpA chose to decline, offering no official confirmation or denial of the proposed deal.

This reported interest from EssilorLuxottica aligns with provisions outlined in Giorgio Armani's will, which posthumously opened the door for a potential sale of the company he founded and meticulously nurtured for five decades. The revered Italian fashion mogul, who passed away in September at the age of 91, had thoughtfully laid out a succession plan designed to ensure the future stability and legacy of his eponymous brand.

Within his testamentary directives, Armani instructed his heirs to sell an initial 15% stake in Giorgio Armani SpA. This sale is to be conducted within 18 months to one of three specified preferred buyers – LVMH Moet Hennessy Louis Vuitton SE, EssilorLuxottica, or L’Oréal SA – or to another company of comparable standing and stature. The will further stipulated that, should the heirs agree to the initial sale, the acquiring buyer would then be granted the option to increase their stake to a majority holding after a three-year period. As an alternative pathway for the company's future, Armani's will also allowed for the possibility of Giorgio Armani SpA being listed on a public stock market.

EssilorLuxottica had previously acknowledged the directives of Armani's will. At the time of the will's contents becoming public, a spokesperson for the eyewear conglomerate had stated that the company "will carefully evaluate" any potential purchase of a stake in Giorgio Armani, signaling their awareness and consideration of the unique opportunity presented by the late founder's succession plan.