The Italian fashion group Salvatore Ferragamo SpA is strengthening control over its distribution in the Greater China region.
On Thursday, the company announced that, together with its subsidiary Ferragamo Hong Kong, it will fully take over the joint ventures Ferragamo Moda (Shanghai) Co. Limited (FMS), Ferragamo Retail Macau Limited (FRM) and Ferrimag Limited (FIM).
The company’s management has decided to acquire businessman Peter Woo’s share packages in the three joint ventures for a total purchase price of 42 million US dollars (40 million euros), according to a statement. Woo therefore holds a quarter of the shares in FMS and FIM and 24.8 percent in FRM. Salvatore Ferragamo announced that the entrepreneur will remain a shareholder in the entire group and a member of its board of directors even after the transaction, which is to be completed by November 9th.
According to the company, the aim of the complete takeover of the three companies is to “consolidate” the presence in Greater China within the framework of the strategic objectives and to carry out a “relaunch”. The group emphasized that the region is “an extremely relevant market with very high growth potential” for the clothing supplier.