L'Oréal, LVMH and Luxottica have been named as the preferred buyers of Giorgio Armani’s beauty and fashion empire, following the death of its namesake founder in September.
The trio of luxury beauty and fashion businesses were mentioned in Giorgio Armani’s will, published on 12 September, as the Armani Group begins a gradual sale of its assets.
Some 15% of the company’s stake must be sold within a year-and-a-half of the designer's death, the will read.
A further 30% to 54.9% expected to be sold to the same buyer within five years.
Purchasing priority has been given to French beauty giant L'Oréal Groupe, as well as luxury company LVMH, which is owned by the world’s richest man Arnault Bernard, and eyewear brand Luxottica.
Other luxury businesses which have had commercial ties with the Armani Group can also be considered by the company’s executive board, according to the will.
If a deal cannot be reached, the late Italian fashion designer’s will dictated that the business’ stocks should instead be listed on the public stock market.
The Giorgio Armani Foundation, established in 2016 to ensure continuous guidance for the company's future management, must retain a 30% stake in the company.
“I decided to create the Giorgio Armani Foundation in order to implement projects of public and social interest,” Armani said when describing the function of the Giorgio Armani Foundation.
“The foundation will also safeguard the governance assets of the Armani Group and ensure that these assets are kept stable over time, in respect of and consistent with some principles that are particularly important to me and that have always inspired my activities as a designer and an entrepreneur.”
Armani was the sole stockholder in the Armani Group prior to his death on 4 September, aged 91.
He built a fashion and beauty empire worth more than £10bn, including a number of brands such as Emporio Armani, A|X Armani Exchange and Armani Privé.
Giorgio Armani joined forces with L’Oréal Groupe in 1988 to license beauty products under the brand name.
This saw the pair develop a line of make-up, skin care and fragrance inspired by the vision of the late designer.
Cosmetics Business has contacted L'Oréal, LVMH and Luxottica for a comment.
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