What’s new: Lanvin Group, the luxury arm of Shanghai giant Fosun International Ltd., is looking to raise up to $544 million through a SPAC listing in New York, as it seeks to fund growth in China and North America.
The group, which owns French high fashion house Lanvin, Italian shoemaker Sergio Rossi, Austrian designer Wolford and other luxury marques, said it would combine with special-purpose acquisition company (SPAC) Primavera Capital Acquisition Corp. — an affiliate of Chinese investment firm Primavera Capital Group — which hit the New York Stock Exchange early last year.
The deal will give Lanvin Group an enterprise value of $1.5 billion, it said. The windfall includes $414 million from the listed firm’s trust account.
Lanvin’s existing shareholders will roll their shares into the new firm, Lanvin Group Holdings Ltd., where they will make up a 65% stake of the company.
Fosun will remain a majority shareholder after the transaction, which should be completed this year, a spokesperson told Caixin.
Background: Fosun Fashion Group rebranded as Lanvin Group in October, three years after it bought a majority stake in the French fashion house.
By 2025, the firm hopes to more than triple its annual revenue from $297 million in 2020. The firm hopes to double the proportion of revenue it draws from Greater China to 28% by 2025, according to a presentation to its investors.
The group operates 300 retail stores and 1,200 points of sales in over 80 countries across the world. The group is expected to open over 200 new stores by 2025.
Fosun is one of China’s largest private conglomerates with business in healthcare, tourism, industry, entertainment, consumer goods and more.
Contact reporter Manyun Zou (manyunzou@caixin.com) and editor Flynn Murphy (flynnmurphy@caixin.com)
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