Czech billionaire adds twist to dispute inside Italy’s Ray-Ban family

After Czech billionaire Michal Strnad raised billions from an initial public offering of his arms company, he made it clear that he wanted to diversify his personal holdings outside of defense. Italy has long been a focus for the 34-year-old, and his first private purchase after the flotation was a stake in Pirelli. But now, he’s made an offer of 30 billion euros ($33.4 billion) to buy the holding firm behind eyewear maker EssilorLuxottica, inserting himself into the Del Vecchio family, one of the most high-profile industrial dynasties in the country. Such a move would attract attention at the best of times, but the surprise bid comes at a tense time for the Del Vecchios, with members at odds over inheritance, governance and how to run the business. That’s led to long-running feuds, failed buyout deals and constant media coverage of the internal turmoil. Strnad isn’t one to shy away from a fight, and his offer for Delfin Sarl, the Italian family’s holding company, could be just that. The 30 billion euros ($33.4 billion) may just be an opening bid, with room to be increased. It’s well below the nearly 45 billion euros ($50.1 billion) that Delfin’s holdings in public companies are worth. Even then, any sale would still require agreement among the eight family members, according to people familiar with the matter, something that’s very unlikely to happen, especially in the current circumstances. In a statement Friday, Strnad said that Italy offers “attractive long-term opportunities.” He didn’t mention Delfin and said he wouldn’t comment on “specific matters.” How CSG’s arms boom funded Michal Strnad’s move into Pirelli, Ferrari and Maserati Strnad made his money from CSG NV, an arms manufacturer whose roots go back to a business his father started in the 1990s trading Soviet military material. Having worked in the business for years, Strnad is seen as a hands-on and results-oriented boss with intricate knowledge of his companies. He’s been CSG’s leader for over a decade, closing deals with private companies and governments across the globe, including NATO members such as the US. He’s also been able to navigate complicated relationships with administrations, including that of Czech Prime Minister Andrej Babis, who denounced profiting arms makers during his election campaign last year. CSG has folded in dozens of companies, many with complicated post-communist ownership structures. The industry has boomed since Russia invaded Ukraine in 2022, boosting Strnad’s wealth to become the richest person in the European Union’s east. Strnad insists on a division of business deals between CSG and his private investments. With cash at hand after the IPO, his recent acquisitions have included the 14% Pirelli stake — which he’s said he’s open to increasing — as well as real estate deals alongside partners in the Czech Republic and Poland. At home, he also bought Czech dealerships of Ferrari and Maserati, sticking with his Italophile leanings. When it comes to his private wealth, Strnad has previously spoken of being a long-term investor and of the fact that in businesses away from CSG he can be “much more flexible.” Inside Delfin, the eight-way family holding company behind Ray-Ban maker EssilorLuxottica That may not be enough to sell his Delfin pitch to the divided Del Vecchio family, whose dispute is playing out like a soap opera or a season of the HBO TV show “Succession.” Delfin is owned equally by eight members of the clan. At the death of EssilorLuxottica founder Leonardo Del Vecchio, each of his six children, his wife Nicoletta Zampillo and her son from a previous marriage got a 12.5% stake in the Luxembourg-based firm. Aside from holding about a third of the eyewear maker, the company is also the largest shareholder in Banca Monte dei Paschi di Siena SpA and played a prominent role in Italy’s ongoing banking consolidation wave. EssilorLuxottica shares rose more than 3% on Friday after news of Strnad’s offer emerged, extending recent gains. Leonardo Maria Del Vecchio’s failed buyout bid and his public feud with EssilorLuxottica chief Francesco Milleri Leonardo Maria Del Vecchio, the fourth son of Leonardo, made an attempt earlier this year to get past the stalemate over his father’s will. He proposed 10 billion euros ($11.1 billion) to buy the stakes held by his siblings Luca and Paola, which would have made him the largest Delfin shareholder. The deal hit a wall after lenders lined up to finance it asked for guarantees over Delfin’s investments, which the board denied. Leonardo Maria resigned as EssilorLuxottica’s Chief Strategy Officer in August and has repeatedly blamed Francesco Milleri, the company’s chairman and chief executive officer, for a poor share-price performance. (Milleri is also chair of Delfin.) The attacks continued this week, when Leonardo Maria told Italy’s RTL 102.5 radio that Milleri is a “caretaker” who failed to identify a successor. Del Vecchio heir’s plea for Italian ownership meets Strnad’s case for identity and roots With plenty of trouble already swirling around the Del Vecchios, Strnad has added another twist. Delfin, unhappy that family affairs are constant media fodder, would have preferred to have kept the offer private, one person said. Now that it’s out, Leonardo Maria was quick to respond with a plea for corporate patriotism. He noted the importance of the company’s origins, positioning himself as a guardian. “My father’s life work must remain an asset for Italy,” he said. Strnad’s statement, while not mentioning Delfin, offered what could be interpreted as a response, noting the importance of “identity and roots.” Italy has “valuable assets that deserve to be preserved and further developed over the long term,” he said. By Andrea Dudik, Sonia Sirletti and Michal Kubala

Czech billionaire adds twist to dispute inside Italy’s Ray-Ban family

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Czech billionaire adds twist to dispute inside Italy’s Ray-Ban family

TUMI’s new growth playbook: From travel expertise to lifestyle performance