MILAN, July 18 (Reuters) – L Catterton, a private equity firm backed by French luxury giant LVMH (LVMH.PA), has agreed to buy a 60% stake in Italian fashion company Etro, have two sources close to the matter announced on Sunday. .

The deal values ​​Etro at around 500 million euros ($ 590 million), the sources said, confirming reports in Italian newspapers La Repubblica and Il Sole 24 Ore.

Etro said in a statement that L Catterton was taking a controlling stake in the company, while the Etro family would retain “a significant minority stake”. He did not go into details and gave no financial details.

Gerolamo Etro, who founded the company in 1968, will be its chairman and the deal is expected to be concluded by the end of the year, the statement said.

“We are delighted to be working with the L Catterton team who will bring their in-depth knowledge of the fashion industry and experience in the international development of important brands, taking our business to new heights,” said the firm. .

LVMH and L Catterton were not immediately available for comment.

In April, a source familiar with the matter told Reuters that the Milan-based luxury brand was considering an expression of interest from L Catterton, an investment firm born out of a partnership between Catterton, LVMH and its billionaire owner Bernard Arnault. .

One of the sources said that Etro’s four children would remain shareholders with a 40% stake and would continue to own Etro’s real estate and directly managed stores.

L Catterton recently acquired German sandal maker Birkenstock. LVMH, which owns a series of Italian labels including jeweler Bulgari, also increased its stake in Italian luxury shoemaker Tod’s (TOD.MI) to 10% in April.

Reporting by Silvia Aloisi; Editing by Elaine Hardcastle and Crispian Balmer

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