Valentino sold to Qatar Royal Family for 3 Billion Dirhams

Following speculative reports that Valentino had been purchased by the Qatar royal family for 3 billion Dirhams, it has now been confirmed - although the price tag was in fact considerably higher.

Mayhoola for Investments, which is understood to be controlled by the Qatar royal family, reportedly paid $858 million (£556 million) to Red & Black Lux Sarl, a company indirectly controlled by the Permira Funds in partnership with the Marzotto family, to acquire the Valentino Fashion Group, which includes Valentino SpA as well as the M Missoni license business.

"Valentino has always been a brand of unique creativity and undisputed prestige. Their ability to blend the aesthetic values of the founder, Valentino Garavani, with a contemporary and sophisticated vision, has been instrumental in enhancing the brand's relevance and establishing a platform with significant future potential," said a spokesman for Mayhoola told WWD . "Our vision is to back management for the long term to exploit the full potential of this exciting brand. We believe Valentino is ideally suited to form the basis for a global luxury goods powerhouse."

Valentino's chief executive Stefano Sassi will remain at the helm of the company, as will current creative directors Maria Grazia Chiuri and Pierpaolo Piccioli.

Qatar is becoming an ever-prominent name in the fashion market, with company's looking to the oil-rich region for reliable and substantial investment. Qatar Holding LLC, which invests on behalf of the State of Qatar and is also linked to the Qatar royal family took control of Harrods in 2010. It also holds a 1.03 per cent stake in LVMH (Louis Vuitton Moët Hennessy), and a 5.2 per cent share in Tiffany & Co.

Valentino label sold for USD738 million!!

Luxury Italian fashion house Valentino is being sold to an unidentified sovereign wealth fund for USD738 million (approx. 7.5 billion AED)

The sale comes five years after Valentino was bought by London-based private equity firm, Permira, at the height of the credit bubble together with Hugo Boss, in a holding company called Red & Black.

The fashion house had a tumultuous five years but has once again become widely praised in fashion circles, winning acclaim for shows at Paris Haute Couture Weekand its ready-to-wear collections. It is a staple of the Oscars and is worn by stars Florence Welch, Alexa Chung and Keira Knightley.

The current deal, which will separate the Valentino brand from Hugo Boss, will see the design house sold to one of Permira's investors. The sovereign wealth fund has not been identified.

The company is thought to trade on a multiple similar to that of other luxury goods houses, which can sometimes be valued as high as 30 times earnings. 

However, Valentino has not always been so easy to manage for the London-based buy-out group. Bought in 2007, the investment soon faced problems, from the aftermath of its founder Valentino Garavani's departure to the sustainability of the billions of debt attached to the deal.

The chief executive, Stefano Sassi, brought in designers Maria Grazia Chiuri and Pier Paolo Piccioli, who together have rekindled a Valentino renaissance. Mr Sassi has also been working on pushing the brand into Asia.

Good luck Valentino ;)