Richemont takes controlling stake in Gianvito Rossi

Luxury giant Richemont said on Friday it has acquired a majority stake in Italian shoemaker Gianvito Rossi.

The news adds to a week of deal-making, after rival Kering announced it was acquiring a 30 percent stake in Valentino.

The acquisition cements Richemont’s niche in strict luxury in fashion, building on a portfolio of apparel and leather goods brands that already includes Chloe, Alaïa and Dunhill. The terms of the deal were not disclosed.

The company said Gianvito Rossi, the founder, CEO and creative director of his namesake brand, will retain a stake in the company and continue to work with the brand as it looks to leverage the Swiss luxury group’s resources to develop and expand globally.

“Our partnership will be beneficial to the next phase of the company’s growth, and we look forward to beginning this exciting new chapter with a spirit of fruitful collaboration,” Rossi said in a statement.

The transaction will not have any material impact on Richemont’s financial results this year. The company’s share price remains under pressure after falling last week amid fears that demand in its two largest markets – the United States and China – is beginning to wane.