Kering: the title climbs, a takeover of Tom Ford mentioned – 04/11/2022 at 09:43


(CercleFinance.com) – Kering shares gained more than 3% on Friday in the first transactions on the Paris Stock Exchange in response to press reports that the group was negotiating the takeover of the Tom Ford brand.

In an article published yesterday evening, the Wall Street Journal – which cites sources familiar with the matter – reports that the French luxury group is in “advanced discussions” with a view to acquiring the fashion and lifestyle brand. ‘accessories.

The financial daily specifies that Kering was so far neck and neck with the American Estée Lauder, but that he would now hold the rope and that an agreement could be quickly reached.

‘We think that such an acquisition would be positive for Kering because of a whole series of reasons, even if the operation would not be transformative in terms of size’, react this morning the analysts of RBC.

‘Tom Ford is a recognized brand, with a positioning on the high end’, recalls the Canadian broker.

‘It has a solid presence in perfumes, eyewear and to a lesser extent in men’s ready-to-wear,’ he adds.

“From Kering’s point of view, there is additional expertise that would allow it to further develop the Tom Ford brand, particularly in women’s clothing and leather goods,” notes RBC.

The broker also points out that the links between the two entities are close, Tom Ford having been the creative director of Gucci between 1994 and 1999 before taking over as artistic director of YSL between 1999 and 2004.

In its article, the Wall Street Journal evokes an acquisition price which would be beyond three billion dollars.

In its reaction note, RBC recalls that Kering had cash of 5.8 billion euros at the end of the first half.

Following this information, Kering granted itself an increase of 3.2%, signing the second largest increase in the CAC 40 index (+0.8%) behind the Societe Generale share (+4.2%) which was for its part boosted by its latest quarterly results.



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