Will Armani Group Be Acquired? LVMH and Others Named as Priority Share Buyers

Contents of the Will Revealed...
Path Opens for Group M&A
Armani, Sole Major Shareholder Since 1985

It has been reported that Giorgio Armani, the legendary figure in Italian fashion who recently passed away, left a will instructing that his shares in the fashion house he founded be sold to multinational luxury conglomerates.

According to Bloomberg and other foreign media outlets on the 12th (local time), citing a copy of Armani's will, the Armani Foundation is required to sell 15% of the fashion house's shares within 18 months, and then transfer an additional 30% to 54.9% of shares to the same acquirer within three to five years.

Italian designer Giorgio Armani passed away at the age of 91 on the 4th (local time). Photo by AFP News Agency

Armani also specified in his will that priority should be given to companies such as LVMH, the leading French luxury conglomerate; L'Oreal, a powerhouse in the beauty industry; EssilorLuxottica, a major manufacturer of lenses and eyewear; or other companies of similar stature. Based on the contents of the will, Bloomberg predicted that this could pave the way for a merger or acquisition of the luxury group founded by Armani.

Armani established the company in 1975 with Sergio Galeotti, and after Galeotti's death in 1985, he became the sole major shareholder. With no children, he left the company to the Armani Foundation, his relatives, and his partner Leo Del Orco. Leo Del Orco is expected to play a central role in the company for the time being.

Last year, the Armani Group recorded sales of 2.3 billion euros (approximately 3.75 trillion won). However, profitability reportedly declined due to the overall industry downturn.

Armani passed away at his home on the 4th at the age of 91. He was hailed as the "Emperor of Elegance" and the "Master of Minimalism," leading the luxury industry. During his lifetime, he maintained a fashion philosophy that "there is no value in making clothes or accessories that are not practical," emphasizing that he designed for real people.