In will, Giorgio Armani backs selling company

The Italian fashion mogul directed his heirs to consider one of three companies.

- BY DANIELE LEPIDO, FLAVIA ROTONDI AND ANGELINA RASCOUET

A GIORGIO Armani SpA luxury store in Milan. The fashion mogul, who died earlier this month, directed his heirs in his will to sell an initial stake in Giorgio Armani SpA to one of three buyers or a similar company.

In his final act, Giorgio Armani opened the door to a possible sale of the company he founded and nurtured for 50 years.

The Italian fashion mogul, who died earlier this month at age 91, directed his heirs in his will to sell an initial stake of 15% in Giorgio Armani SpA to one of three preferred buyers — LVMH Moet Hennessy Louis Vuitton SE, EssilorLuxottica SA or L’Oréal SA — or a company of similar standing within 18 months, according to a copy of documents published Friday and obtained by Bloomberg News.

Should his heirs agree, that buyer would then have the opportunity to raise its stake to a majority after three years, according to the will. As an alternative, Armani could be listed on a public stock market. Analysts at Berenberg value the company at up to $8.2 billion.

The road map set forth in the will reflects the attention to detail Armani displayed since founding the company in 1975. His decision to sell came as a surprise though, after Armani spent decades guarding its independence. He flirted with suitors occasionally but always opted to stand alone, even as other Italian luxury brands fell into the hands of larger rivals.

“Armani presents a rare opportunity,” Berenberg analysts Nick Anderson and Harrison Woodin-Lygo said in a research note.