The PPR Group, owned by the France-based Pinault family, announced today the latest in a series of moves intended to refocus the group on the luxury consumer goods industry.
The luxury retailer said it expected to sell a majority share in its subsidiary distribution group CFAO by the end of the year. CFAO operates mainly in Africa and specialises in the distribution of pharmaceutical products and cars.
Francois-Henri Pinault (pictured), second-generation chairman and CEO, said: "The proposed flotation of CFAO is in line with the group's strategy of refocusing its business. This project is a further step in PPR's growth strategy to focus on a coherent group of internationally recognised lifestyle brands, both in the broader consumer and luxury markets."
Today's announcement is the latest tough decision taken by Pinault since he took over the top job in 2005. Quick to spot the recession, he engaged in aggressive cost cutting measures that led to a workers' revolt over job cuts. However, his forward planning placed PPR well to weather the recession and the firm has faired considerably better than many of its rivals in the luxury goods industry.
PPR owns many high-end, luxury brands including Gucci, Yves Saint Laurent and Sergio Rossi. The group was founded in 1963 by Francois-Henri's father, Francois Pinault, and had 2008 revenues of €20.2 billion.
Francois-Henri is shortlisted for www.campdenFB.com's Family Business Leader of the Year. To vote for your winner click here
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