The Chinese fashion group Lanvin Group has created the conditions for its listing on the New York Stock Exchange. On Tuesday, the parent company of the Lanvin, Sergio Rossi, Wolford, St. John Knits and Caruso brands announced that it had entered into a binding agreement with Primavera Capital Acquisition Corporation (PCAC) to merge the two companies. The new company will operate as Lanvin Group Holdings Limited after the merger, the group announced.
PCAC is a so-called Special Purpose Acquisition Company (SPAC), i.e. a company that is already listed on the stock exchange and was founded specifically as a vehicle for the IPO of other companies. PCAC is backed by the Chinese financial investor Primavera Capital Group, whose “extensive networks and knowledge in the consumer goods sector” will be used by the Lanvin Group in the future.
Wolford mother worth 1.4 billion euros
Under the terms of the agreement, the pro forma enterprise value of Lanvin Group is valued at US$1.5 billion (EUR1.4 billion). The group expects revenues of up to 544 million US dollars from the transaction that has now been decided. Among other things, some well-known financial companies have already committed to investments, according to a statement. The fashion group, which emerged from the Fosun Fashion Group, wants to use the additional funds to accelerate the organic growth of the existing brands and to finance further acquisitions. The company plans to open more than 200 new boutiques by 2025.
“Today’s announcement is another milestone in Lanvin Group’s growth trajectory,” said Joann Cheng, the group’s chairman and CEO, in a statement. “We look forward to working with Primavera on our next chapter of growth in Europe, North America and Asia.”