Kering, The Owner of Gucci Sold Sergio Rossi Luxury Shoes

Sergio Rossi, the famous brand for luxury women shoes now belongs to Investindustrial, a leading European investment. Investindustrial has reached an agreement on Wednesday to buy all shares of Sergio Rossi from Kering SA.

According to Reuters, Kering said on Wednesday it had reached an agreement with investment group Investindustrial for the sale of 100 percent of Italian luxury shoemaker Sergio Rossi. With the purchase, Investindustrial will have all Rossi's industrial assets and industrial rights attached to its brand, together with the entire distribution network

Sergio Rossi is one of the most famous Italian luxury footwear brands, long known for its high quality production of shoes. The Milan-based company has built its credibility on its unique craftsmanship and on the creativity that characterizes its designs. It has a significant international presence with over 80 stores worldwide, all of which are mix of directly operated stores and franchised stores.

Bloomberg reported that Kering has decided to sell Rossi after a strategic review following years of Rossi's disappointing result under leadership of Christophe Melard. Kering CEO Francois-Henri Pinault had told Bloomberg in February about his plan to dispose Rossi from Kering.

Kering is a luxury goods holding company and own many famous luxury brands like Gucci, Balenciaga, and YSL. The company was etablished in 1962 by Francois Pinault to specialize in wood trade and construction material. Since 1994, it was known as Pinault-Printemps-Redoute (PPR) before renamed as Kering in 2013. Francois-Henri Pinault, nicknamed FHP, the son of founder Francois is the CEO of the company.

The low performance of Sergio Rossi has been Kering's Achilles' heel for many years. Therefore, according to Luca Solca, an analyst at Exane BNP Paribas in London disposal of Sergio Rossi is good news for Kering. He said, "Sergio Rossi has been the exception to the rule in Kering's most positive track record of adding value to small luxury-goods acquisitions."

New York Times reported that Kering and Investindustrial is expecting to close the transaction in the upcoming weeks. Kering and Investindustrial have started negotiating the purchase since July to add Sergio Rossi to luxury brands managed by Investindustrial. "Currently, we are partners of leading brands such as Aston Martin, Flos and B&B Italia that are growing internationally," Andrea C. Bonomi, senior partner of Investindustrial said, "the same growth path that we are looking to achieve for Sergio Rossi."

The deal benefit both Investindustrial and Kering altogether. Investindustrial will have a new luxury brand to its portfolio, while Kering is now able to focus more on its high performing brands.