Private equity firm L Catterton, whose apparel investments include Sweaty Betty, Ganni and Pepe Jeans, is to acquire Italian luxury label Etro.

The deal will see L Catterton Europe snap up a majority stake in Etro, while the founding Etro family will retain a “significant minority”. While further financial details weren’t shared, sources close to the matter told WWD the deal was worth 500 million euros for a 60 percent stake.

The brand’s founder Gerolamo Etro will be appointed as chairman of the company. “My family and I take great pride in having established Etro as a strong luxury brand that resonates with consumers around the globe,” he said in a statement. “L Catterton has a shared vision and a unique appreciation for our business, and the firm takes the same approach to partnership our family does.”

Etro eyes ‘significant opportunity’ in Asian market

L Catterton will support Etro to expand into new categories, grow its customer base, bolster its digital presence and drive global expansion, with a focus on the “significant opportunity” in Asia.

Gerolamo Etro said that with the help of LVMH-backed L Catterton, he believes Etro “can enter its next chapter of growth and solidify its place as one of the great, lasting luxury houses”.

Etro was founded in Milan in 1968 as a textile company and has become well known for its iconic paisley motif and bold patterns inspired by travel. Today, the company has a presence in approximately 140 retail stores in high-end shopping locations across the world.

It sells women's and men's fashion, accessories, beauty and fragrances, and home goods.

Luigi Feola, managing partner, head of Europe at L Catterton, said: “We are honored to welcome such a respected and iconic fashion brand into the L Catterton family and are delighted to partner with the Etro family for the next phase of the company's evolution.

“We are confident that with our broad global network and experience building fashion brands, Etro will be well positioned to become an international powerhouse and a leader in its category.”