Exor has 6.5 billion to spend in acquisitions. A sum that would allow the company to capture quite a big prey. But it won’t be Armani, or at least it won’t be any time soon, says president John Elkann. “There aren’t as many opportunities for acquisitions in the luxury industry, when compared to other ones”. For example. “Health and tech, both industries of interest for us”. Words that are similar to those spoken by Renzo Rosso (OTB) and other players such as Zegna, Capri Holdings, Lanvin Group, Piquadro. They are all looking to acquire brands, but the segment isn’t currently offering many opportunities.
6.5 billion to spend
Exor is ready to spend 6.5 billion in acquisitions and investments. John Elkann (in photo from Imagoeconomica), CEO of Exor, said so during a conference with analysts. Of these, 5 billion are allocated to be invested in segments of interest: health, luxury and tech. they will be used to acquire “a large-size company, as well as 3 to 5 other smaller ones”, stated Mr. Elkann, highlighting how the company is assessing the dossiers and studying market opportunities. The remaining 1.5 billion will provide funds for startups via the firm’s financial vehicle.
Armani? Keep calm
“We are not in a hurry, there is a lot to do, and we need patience”, said Elkann to La Repubblica. The question regarding a potential deal with Armani was inevitable. “As I have said in the past, Armani is a company for which we have great respect. And Giorgio Armani is an entrepreneur and creator for whom I personally have a great deal of admiration. The important thing for us is to be open to discuss potential deals with any interested party. But there are currently no discussions between Armani and ourselves, nor with Giorgio Armani himself”.
Complicated luxury
The luxury segment fascinated Elkann, but it’s also the one with the least number of opportunities for M&A operations. “With the price volatility of energy and raw material, it’s hard to give a price to companies”, had said Stefano Cervo, analyst with KPMG to L’Economia. Many companies have claimed they are interested in making acquisitions in the luxury segment, but the current context is stopping the operations.
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