The late designer Giorgio Armani instructed his heirs to gradually sell the fashion brand he has created 50 years ago or to seek a capital opening, according to his will, marking a surprising turnaround for a company that has always rigidly protected its independence and its Italian roots.
The will, analyzed by Reutersdetermines that heirs should sell an initial share of 15% in the Italian brand within 18 months and later transfer additional share between 30% and 54.9% to the same buyer, between three and five years after Armani’s death.
The designer, known in the sector as “King Giorgio”, died on September 4 at the age of 91, without leaving children to inherit his fashion empire.
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The document also establishes that the priority must be given to the luxury giant LVMH, the heavyweight of the beauty L’Oréal, the leader of the Essirluxottica glasses sector, or another group of “equal position” identified by an Armani-created foundation to preserve his legacy, with the agreement of the Business and Life of Armani, Pantaleo Dell’orco.
As an alternative for the sale of the second share of shares, an initial public offering (IPO) should be made in Italy or in an equivalent market, according to the will.
It was not clear what would happen if any of the heirs or the foundation did not comply with the sales instructions provided for in the document.
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The explicit mention for the sale of stakes and the possibility of companies listed in France as surprising potentials, given Giorgio Armani’s history of refusing to dilute his control or open the group’s capital. The decision can stimulate a race to ensure a slice of the brand, which, according to experts, maintained its appeal despite the slowdown of the global luxury market.
Essirluxottica, controlled by the heirs of Italian businessman Leonardo del Vecchio and with commercial ties with Armani, said in a statement that he would consider a possible agreement.
“We are proud of the consideration that our group and its administration have received from Mr. Armani,” a spokesman for Essirluxottica told Reuters. “Along with the board, we will carefully evaluate this development perspective, considering the deep ties already existing between the two groups.”
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Over the years, the creator of the popular destructed suits that gave him international fame has received several proposals, including one in 2021 by John Elkann, heir to the Italian family Agnelli, and another of the luxury brand Gucci, when Maurizio Gucci was still in charge.
Armani was the only majority shareholder of the company who founded with his late partner Sergio Galeotti in the 1970s and kept rigid control – both creative and managerial – until the end.
He left no children to inherit the business, which generated relatively stable revenue – 2.3 billion euros in 2024 – but whose profits diminished amid a wide recession in the luxury sector.
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The will, which lists six different types of shares with various voting rights, grants Fondazione Giorgio Armani and the right -hand life partner Pantaleo Dell’orco 30% and 40% of the company’s voting rights, respectively, which means that together they would control 70% of the group’s voting rights.
The Foundation will maintain a share of 30.1% in case of opening of capital, according to the will.
The Foundation Council, composed of five members, will be chaired by Dell’orco, according to the statutes. Other members include the Rothschild Irving Bellotti partner, Armani Andrea Camerana’s nephew and two people outside the family, according to a source close to Reuters.
The heirs should consider other fashion and luxury companies with which the Armani group maintains commercial bonds for future sale, according to the will.
The Armani Group has commercial partnerships with L’Oréal and ESSILORLUXOTTICA.
However, with a market value of 240 billion euros and a reputation of a minority investor patient and supporter, the LVMH conglomerate, controlled by billionaire Bernard Arnault, may prevail.
“We believe LVMH would probably be the most interested, among the three, in a participation if it became available, given the strategic adequacy,” Berenberg analysts said in a statement. They estimate that the group could easily acquire Armani, valued between 5 and 7 billion euros.
