Francois Pinault: Net worth, Biography, Career
French
business mogul and a self-made billionaire, Francois Pinault is the founder of
the luxury business conglomerate Kering which has fashion brands such as Gucci,
Saint Laurent, and Alexander Mc Queen registered under it, and Artemis, an
investment company. He is the second richest man in France and ranks No.26 in the Forbes 2020 World's Billionaires list.
$34.5B as of May 27, 2020.
Early life and education
Born on the
21st of August 1936 in Les Champs-Geraux, Brittany, France. Pinault
grew in a humble family as his father was a timber trader. Part of Pinault’s
business career choice can be linked back to his father’s occupation. He never
had the opportunity to finish high school nor further his education right
before going into business proper. At 16, he dropped out of the College
Saint-Martin, Rennes. The next stop for Pinault after dropping out of high
school was enlisting with the Army at the peak of the Algerian war; this was in
1956. His stay with the Army was short-lived as he withdrew and returned back
home to help with the family business—timber trading, until the death of his
father.
Business Career
By 1963,
Pinault ventured into timber business properly after selling off his father’s
business. Using the little money, he had saved and a loan he got from Credit
Lyonnais, he was able to establish his own timber and building materials
trading company which he named Societe Pinault (renamed Pinault SA in 1988).
The company grew and was successful right from its inception. Part of the
company’s business strategy was acquiring companies facing a financial downturn
and rebranding them. Another major business advantage Pinault had was
government policy influence on entrepreneurship. Successful businesses were
encouraged to acquire business going under or facing bankruptcy. The government
policy involved letting interested successful companies purchase bankrupt
companies at a subsidized rate.
Pinault’s
company Societe Pinault was later renamed to Pinault SA in 1988 and went public
that same year. As a public company, Pinault SA was listed in the Paris Stock
exchange, and by 1993 it was renamed Pinault-Printemps-Redoute (PPR) after it
had acquired La Redoute (a French mail-order company) and La Printemps (a
French department store). After expanding its business interests to investing
in retail companies where he bought majority stakes. In 1992, Pinault founded
Artemis, an investment company that manages all the family’s investments which
is solely run by the Pinault family. Through the company, Pinault has made
several investments and acquisitions some of which are Christie’s, Le Point,
Ponant, and the Rennes Football club.
It, however,
wasn’t so rosy for Pinault’s company as the company experienced its first major
setback in 1997 after making the largest unsolicited bid in Paris at the time.
The bid was for Worms, a financial service provider group. He lost the company
to AGF and the Agnelli family of Italy. Shortly after the loss, the company lost
two other bids which hindered its move into the financial sector. In 1996,
Pinault yet lost another opportunity to explore the financial sector by failing
to acquire a company affiliated with merchant banking called Navigation Mixte.
Pinault-Printemps-Redoute eventually diverted its attention to exploring the
luxury business line in 1999 by acquiring majority shares of 42% in the Gucci
Group, and later purchased the Yves Saint Laurent Company, Boucheron,
Balenciaga, and Alexander McQueen respectively.
In 2003,
Francois Pinault stepped down as PPR’s chairman with his eldest son
Francois-Henri taking over the role. Under Francois-Henri’s management, the
company was renamed Kering in 2013, and it acquired more luxury brands and
companies such as Pomellato, Brioni, and Girard-Perregaux. In 2016, Kering
became a full-time luxury retail trader, and by 2018 became a full-time luxury
group after selling off the rest of its Puma shares.
Other interests
After his
marriage to his second wife, Maryvonne Campbell (1970 -), an art lover, Pinault
picked a keen interest in art. His first collected work of art in 1980, a
painting by Paul Serusier. He has over thousands of artworks by Picasso,
Man-ray, Mondrian, Subodh Gupta, Paul McCarthy, Damien Hirst amongst other
renown artists. In total, Pinault has at least 5,000 art collections worth over
$1.8 billion. To house all his art collections, he purchased the Palazzo Grassi
SpA, Venice, and the Punta della Dogana, Venice. In collaboration with the city
of Paris, renovations for the Bourse de commerce Centre of Paris, an open-air
art theatre are ongoing under Tadao Ando, a renowned architect. The project
which started in 2016 is set to reopen by the spring of 2020.
The Pinault
family has also participated in philanthropic and humanitarian acts one of
which is the rebuilding of the 800-year-old Notre Dame Cathedral which
experienced a terrible fire breakout earlier this year. To support the
rebuilding of the cathedral, the Pinault family donated $113 million (€100
million). With respect to another previous fire outbreak in the Paimpont
forest, Brittany which happened in 1990, Pinault provided the community with
huge financial support especially the areas greatly affected by the oil spill.
Awards
●
Military Value Cross –
1958
●
Breton of the Year (Armor
Magazine) – 2006
●
Most influential
personality in the art world (Art Review Magazine) – 2006/07
●
Grand Officier de la
Legion d’honneur – 2011
●
Grand Officer of the
Ordine della Stella d’Italia – 2016
●
Grand Croix de la Legion
d’honneur – 2017
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