L Catterton, the global private equity firm in with LVMH has a minority stake, has reinforced its investment in Italian luxury fashion house Etro through a new 1.73 million euros capital injection.
Approved in a shareholders’ meeting led by CEO Fabrizio Cardinali, the recapitalisation follows a substantial 15 million euro capital boost implemented last November, reported Italian news outlet Pambianco. The move, which involves issuing 291,441 new ordinary shares at a premium, further consolidates L Catterton’s control over the Milan-based company and signals its continued confidence in Etro’s market potential.
This latest financial manoeuvre comes as Etro shows signs of recovery and growth. The company reported a turnover of 277 million euros for 2022, marking a 17 per cent year-on-year increase and a return to operating profitability with EBITDA climbing to 9 million euros. The Etro family, through their holding company Gefin, has waived their right to participate in this capital increase, effectively diluting their minority stake.
L Catterton’s deepening investment reflects a bullish outlook on Etro’s potential and positioning it for accelerated growth initiatives.
