Objective: triple in three years its turnover and to achieve it the high fashion group Lanvin, which owns brands such as Lanvin, Sergio Rossi, St. John Knits and Wolford, aims for listing on the New York Stock Exchange.
The decision, announced overnight in a press release, follows an agreement that provides for the creation of a Special Purpose Acquisition Company (SPAC), Primavera Capital Acquisition Corporation, an affiliate of Primavera Capital Group, the Chinese capital investment group present in the share capital of players such as Alibaba or Onebyte in China and which boasts over 17 billion dollars of assets under management.
Total proceeds from the deal expected to be $544 million
Lanvin Group (new name registered last October to replace the previous Fosun Fashion Group) provides that the agreement will confer a business value pro forma of 1,5 billion dollars, with a asset value pro forma combined up to $1,9 billion.
Il total proceeds is expected to be around 544 million dollars, a coffer that will be used to accelerate organic growth across product category and retail expansion, but also to fund additional acquisitions, the statement said.
At the end of the operation SPAC shareholders would own 28% of the group's shares, while the current shareholder base would retain 65%.
“Going public is a natural step. The global luxury market is making a comeback and we have seen strong growth in our portfolio. We saw significant untapped growth opportunities for product category extension, digitization and retail expansion, particularly in the North American and Asian markets,” he said. Joann Cheng, president and chief executive officer of Lanvin Group, adding that the group intends to grow its annual revenue from the current $300 million, to $1 billion by 2025.
In Europe almost 50% of the business. Now strengthen Greater China
Nearly half of the group's revenue currently comes from the region EMEA with only 14% derived from the region of Greater China, the goal is to double the percentage share of revenue from Greater China to 28% by 2025.
Product category expansion will be different for each brand within the portfolio, says Cheng: Lanvin will focus on developing leather goods and Wolford will use its experience in technical manufacturing to move to thesportswear. THE cosmetics they are another category that the group is looking at.
While Lanvin Group's focus remains on acquiring high-end heritage brands, this year it also plans to launch an "incubator project" dedicated to minority investments in fast-growing companies that are creatively or digitally strong as well as those with a focus on sustainability and smart supply chains.
“We have to look from A to Z across the industry, and we are also very open to investing in growing brands to make our ecosystem more complete,” said Cheng.
The Lanvin Group's current stable of brands operates in more than 80 countries with approximately 1.200 points of sale worldwide.
Sergio Rossi will open mega stores in via della Spiga in Milan
Sergio Rossi, which passed to the Chinese group in 2020, saw the entry of last January Evangelie Smyrniotaki as its new artistic director. The luxury footwear company from San Mauro Pascoli has announced that it will open in Milan this spring via della Spiga at 26 a flagship of about 200 square meters on two levels, managed by the Hines real estate group in the role of investor and development manager.
“Via della Spiga represents one of the most important streets of Milanese fashion and in which I strongly believe as an increasingly important shopping destination. The new store will be an expression of the Brand's values: if on the one hand it will enhance the femininity and elegance of Sergio Rossi, on the other it will be a hub for expanding its vision and its more immersive and innovative soul” he said on the occasion of the announcement Richard Sciutto, CEO of Sergio Rossi.
