Lanvin Group prepares NYSE listing
The Lanvin Group, since October 2021 the new name of Fosun, is shifting to a higher gear. On March 23, the group, owner of Lanvin, Sergio Rossi, Wolford, St John Knits and Caruso, announced it is set to list on the New York Stock Exchange, under ticker symbol LANV. The group, headed by CEO Joann Cheng, will carry out this operation in collaboration with Chinese investment firm Primavera Capital, a shareholder in the likes of Alibaba and Onebyte in China. Primavera Capital has set up a special purpose acquisition company called Primavera Capital Acquisition Corporation (PCAC), entering into a business combination agreement with Lanvin Group to attract stock market investors. The date of the IPO has not been decided yet, and PCAC's shareholders will, once the operation is finalised, own a 28% stake in the group.
Cheng, president and CEO of Hong Kong-based Lanvin Group, said that “today’s announcement marks another milestone in Lanvin Group’s growth journey. We are excited to partner with Primavera for our next chapter of growth across Europe, North America and Asia. In recent years, we have not only invested in prestigious heritage brands but have also created a strategic alliance of industry-leading companies as partners and co-investors in Lanvin Group. Each of these partners is uniquely qualified to help drive growth, enhance the performance of our brands and unlock the full potential of new markets. We plan to accelerate the growth of our portfolio via both organic development and disciplined acquisitions, building a global portfolio of iconic luxury fashion brands that appeal to a broad customer base. Lanvin Group will not only enable these brands to flourish in their home countries, but also in Asia and North America, the largest luxury markets in the world.”
In the brief to potential investors, Lanvin Group highlighted its unique eco-system of partners, which include Primavera, an expert in Chinese e-commerce and consumer markets; Baozun, a global e-commerce operator; K11, a luxury shopping mall developer and operator; Stella International, a manufacturer of luxury footwear; Activation Group, an expert in interactive marketing performance data; Japanese trading conglomerate Itochu Corporation; Fosun International, Lanvin Group's founder, active across a number of industrial sectors; and the Neo-Concept group, an apparel manufacturer with a focus on sustainable fashion.
“We have been looking to support an emerging leader in the consumer sector with enduring global appeal and significant growth prospects in Asia,” said Max Chen, CEO and CFO of PCAC and a partner of Primavera. “In Lanvin Group, we see a unique global business with a rich heritage, an entrepreneurial management team, and a differentiated strategy to build a luxury powerhouse for a new generation of consumers, especially benefiting from surging luxury consumption in Asia. Lanvin Group and Primavera share the same vision of nurturing and reinvigorating world-class luxury brands. We look forward to working together to further develop Lanvin Group’s global platform and drive growth across its brand portfolio,” added Chen.
Lanvin Group is currently present in 80 countries via some 300 monobrand stores and 1,200 multibrand retailers. It generates a revenue of €333 million, of which €66 million produced by Lanvin and €57 million by Sergio Rossi. The group said it is targeting an average annual growth rate of 31%, driven by the opening of 200 new stores and a 40% annual increase in online sales. Total revenue is forecast to reach just shy of €1 billion by 2025, with a target of €473 million for 2022. Lanvin Group is especially keen to tap its potential in China, a country that currently accounts for 14% of its sales. The group emphasised that, by 2025, Chinese consumers are expected to account for 45% of global luxury goods consumption, as opposed to a 23% share last year.
Lanvin Group indicated it will rely on its portfolio brands’ organic growth to achieves its objectives. The stock market listing, which is forecast to generate proceeds of up to $544 million, partly coming from further capital pledged by partners already active within the group, will also enable Lanvin Group to plan future acquisitions. In the investor presentation, the group indicated that in 2022 it intends to invest €20 million in an incubator for emerging brands, and to acquire minority stakes in start-ups operating in the fashion, e-commerce, design and supply chain sectors. Specifically, Lanvin Group stated it wants to carry out a dozen investment operations by the end of 2025, including two strategic acquisitions in 2022. The question is, which acquisitions are likely to rapidly add value to the group’s portfolio? According to Lanvin Group’s forecasts, such acquisitions are expected to contribute an extra €60 million to the group’s revenue from 2022.
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