French luxury goods company Kering SA said March 28 it is ending its 17-year-old partnership with fashion house Stella McCartney Ltd. and selling its 50% stake in the business to British designer Stella McCartney.
McCartney will buy 50% of the business from Kering for an undisclosed amount and will become its sole owner. McCartney and Gucci Group launched the luxury lifestyle brand in 2001 through a joint venture. Kering, formerly known as PPR, subsequently took over full control of Gucci Group in 2004.
"It is the right moment to acquire the full control of the company bearing my name. This opportunity represents a crucial patrimonial decision for me," McCartney said.
A spokeswoman told Reuters that the French company will continue its support and services to Stella McCartney for a year and the deal in expected to close by the end of first quarter of 2019.
The French luxury group was reportedly in talks to sell its 50% stake in the brand to the fashion designer.
McCartney will continue as the board member at the Kering Foundation, a philanthropic organization dedicated to women's rights and social causes.
On Jan. 11, Kering said it decided to reduce its stake in German sports brand PUMA SE to 16%, subject to shareholders approval at Kering's annual meeting April 26.