L’Oréal and LVMH among potential buyers in Giorgio Armani stake sale

Italian fashion house Giorgio Armani is reportedly considering selling a 15% stake in three equal parts following the designer’s death, potentially bringing in three buyers he had selected as shareholders.

Armani, who died last September at the age of 91, had named French luxury group LVMH and two commercial partners - L'Oréal and EssilorLuxottica - as preferred buyers.

L’Oréal is a longstanding licensing partner for Armani Beauty, while EssilorLuxottica manages the brand’s eyewear business. LVMH remains one of the luxury sector’s largest groups.

According to Italian newspaper la Repubblica, the group is considering splitting the 15% stake evenly among the three companies in order to keep all parties involved during the early stages of the process.

Under the terms of Armani’s will, the sale must take place within 12 to 18 months of his death.

The report also stated that Armani CEO Giuseppe Marsocci is preparing a five-year business plan ahead of appointing advisers to oversee the potential sale process.

The development follows reports that L’Oréal was exploring a possible acquisition of Giorgio Armani’s beauty business.

Chief Financial Officer Christophe Babule said in December last year that the company was “definitely” examining the possibility and expected to begin work on the deal “very soon”.

L’Oréal currently holds a licence, valid until 2050, to develop Armani fragrances, skincare and makeup products.