PPR (Gucci Group) strategy for acquisitions will focus on small to medium businesses
PPR Gucci Group owner and CEO Francois Henri Pinault confirmed in an interview to the Financial Times that his group is seeking acquisitions of small to medium sized luxury businesses, valued EUR 50 million – EUR 300 million. He also spoke about LVMH’s acquisition of BVLGARI saying his company would have never been interested in Bvlgari due to the size of the company which he considered too big. He gave the example of Bottega Veneta which he bought for 30 million euros and which is today worth over 500 million euros.
According to financial analysts, following PPR’s sale of its distribution company in Africa and other restructuring measures, the group has over 5 billion euros available to acquisitions. Mr Pinault’s comments have cleared the numerous rumours that his company would target Burberry.