Rellie: M&A Bargain Hunting in Luxury Fashion Market
Deal News | Jun 10, 2025 | BDA Partners
The recent economic environment has created a buyer-friendly market for mergers and acquisitions in the luxury fashion sector. Euan Rellie, Managing Partner and Chairman of Consumer & Retail at BDA Partners, describes the current state of M&A as akin to 'bargain shopping'. With historical parallels to the 2008 financial crisis, there is a suggestion that today's deals could lead to lucrative returns. Billion-dollar M&A deals in the luxury space have been less frequent in recent years, but current market conditions and recent tariff adjustments could prompt divestitures by underperforming brands. Companies like Ami Paris, Brunello Cucinelli, Burberry, and others are highlighted as potential targets, each with unique circumstances such as recent IPOs, independence stances, or acquisition rumors. The article suggests that now could be an opportune moment for strategic buyers to make acquisitions in the luxury fashion industry.
Sectors
- Luxury Fashion
- Private Equity
Geography
- Global – The article discusses companies and potential M&A activities across multiple countries, including the United States, Italy, and France.
- Europe – Several companies mentioned, such as Brunello Cucinelli and Burberry, are based in Europe. The focus on European companies in M&A activities is significant.
Industry
- Luxury Fashion – The article focuses on the luxury fashion industry, discussing mergers and acquisitions related to high-end brands.
- Private Equity – Private equity is highlighted as a key player in seizing M&A opportunities in the current economic climate.
Financials
- 1.7 billion – Cash consideration paid by Kering for a 30% stake in Valentino.
- 13 per share – Nonbinding acquisition offer received by Guess? Inc. from WHP Global.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| BDA Partners | Advisor | Company | BDA Partners provides advisory services in mergers and acquisitions, particularly in the consumer and retail sectors. |
| Euan Rellie | Managing Partner and Chairman of Consumer & Retail | Person | Euan Rellie offered insights into the current M&A climate in the luxury fashion sector. |
| Ami Paris | Potential M&A Target | Company | Acquired by Sequoia Capital China in 2021 and seeking for a new buyer. |
| Brunello Cucinelli | Potential M&A Target | Company | Italian fashion brand listed on the Euronext Milan stock exchange. |
| Burberry | Potential M&A Target | Company | A renowned British luxury fashion brand traded on the London Stock Exchange. |
| Dolce & Gabbana | Potential M&A Target | Company | An Italian luxury fashion brand with no clear succession plan. |
| Giorgio Armani | Potential M&A Target | Company | The founder Giorgio Armani is nearing retirement, making the brand a possible M&A target. |
| Guess? Inc. | Potential M&A Target | Company | Publicly listed fashion company that received a nonbinding acquisition offer. |
| Jimmy Choo | Potential M&A Target | Company | Acquired by Capri Holdings, the brand is expected to be sold after the Versace sale. |
| Only The Brave (OTB Group) | Potential M&A Target | Company | Plan for an IPO was postponed indicating possible interest from acquirers. |
| The Row | Potential M&A Target | Company | Fashion brand reportedly receiving investments increasing its attractiveness for acquisition. |
| Valentino | Potential M&A Target | Company | Partially acquired by Kering with an option to acquire fully by 2028. |