Lanvin Group is taking the SPAC route to Wall Street.
The luxury company, home to Lanvin, Sergio Rossi, Wolford, St. John and Caruso, agreed to a merger with Primavera Capital Acquisition Corp. that will see the fashion house trade on the New York Stock Exchange under the symbol “LANV.”
The deal will give Lanvin Group a “pro forma enterprise value of $1.5 billion, with a combined pro forma equity value of up to $1.9 billion,” the companies said.
Joann Cheng, chairman and chief executive officer of Lanvin Group, said: “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 coinvestors 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.”
As part of the deal, Lanvin Group shareholders will roll their shares in Lanvin Group into the combined venture, giving them a roughly 65 percent stake altogether. Lanvin Group will receive proceeds of up to $544 million and plans to use the money “for potential future acquisitions that complement its luxury fashion ecosystem.”
That puts an aggressive player front and center in fashion’s dealmaking world.
Max Chen, chairman, CEO and chief financial officer of PCAC and a partner at its backer Primavera Capital Group, said: “We have been looking to support an emerging leader in the consumer sector with enduring global appeal and significant growth prospects in Asia. 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.”
Lanvin Group operates in more than 80 countries with 1,200 points of sale, 3,600 employees, and more than 300 retail stores. And it plans to open another 200 doors by 2025.
Previously known as Fosun Fashion Group, the firm changed its name in October, when it scored a valuation of better than $1 billion with investments from Japan’s Itochu Corp., Chinese footwear maker Stella International and private equity player Xizhi Capital.
This story was reported by WWD and originally appeared on WWD.com.