The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Lanvin Group, which owns the French fashion brand known for its red-carpet gowns, plans to float in New York via a blank-check company in a sign of confidence for the luxury industry.
The transaction is set to give the company an enterprise value of $1.5 billion. Lanvin’s owners, which include Chinese investor Fosun, are hoping to raise $544 million, which will help fund expansion and could help finance at least one acquisition within the next three years, Chief Executive Officer Joann Cheng said in an interview.
“New York is not only a financial hub globally, but also one of the fashion capitals,†Cheng told Bloomberg TV. “We do really see a lot of potential for our group in North America,†including expanding its store network and online presence, she said.
China’s Fosun renamed its fashion business Lanvin Group in October, giving it the name behind the oldest operating French luxury couture maker. The unit also owns Italian shoemaker Sergio Rossi, Austrian lingerie brand Wolford, American womenswear St John Knits as well as Italian menswear brand Caruso.
Lanvin is going public following a combination with Primavera Capital Acquisition Corp, a blank-check firm which began trading last year in New York.
Equity valuations have been coming off since the start of the year amid fears over rising interest rates, the war in Ukraine as well as risks in China.
The company follows Ermenegildo Zegna NV, which made a similar move last year. Few big luxury names are listed in Greater China, except for Italy’s Prada SpA, which had an initial public offering in Hong Kong more than a decade ago.
Revenue should triple by 2025 from 333 million euros ($366 million) last year, Cheng said. Almost half of that comes from Europe, Middle East and Africa, followed by a third for North America, 14% for Greater China and 5% for Japan. Lanvin isn’t the biggest brand inside the group in terms of revenue, “but it has the biggest brand equity,†Cheng said, without giving further details.