L Catterton, a private equity firm backed by French luxury giant LVMH, has approved acquiring 60 percent stake in Italian fashion company Etro, two sources familiar with the matter said on Sunday.

The deal values Etro at about $590 million, the sources said, confirming reports in Italian newspapers La Repubblica and Il Sole 24 Ore.

In April, a source close to the matter had told Reuters that the Milan-based luxury brand was considering an expression of interest from L Catterton, an investment firm born out of a partnership among Catterton, LVMH and its billionaire owner Bernard Arnault.

The four children of Gerolamo Etro, who founded the company in 1968, will stay on as shareholders with a 40 percent stake and will remain owners of Etro’s real estate property and directly operated stores, one of the sources said.

L Catterton recently bought German sandal maker Birkenstock.

LVMH, which owns a string of Italian labels including jeweller Bulgari, also boosted its stake in Italian luxury shoemaker Tod’s to 10 percent in April.