A growing number of M&A deals and funding rounds are bringing together some of the biggest names in the fashion and luxury space. In November, a $1.15 billion deal came to light, bringing together Cartier’s parent company Richemont, Chinese e-commerce titan Alibaba, and fashion retail platform Farfetch. The headline-making transaction followed from reports that a “mega deal” was in the making. In addition to proving noteworthy because it brought together three very big names in the fashion sphere in furtherance of an effort that largely focuses on “providing luxury brands with enhanced access to the China market,” the alliance is striking, as it has given rise to speculation about a potential consolidation, with at least some analysts wondering aloud whether the $1.15 billion tie-up could be “a preamble” a larger M&A effort, namely, Richemont merging Yoox Net-a-Porter with Farfetch or the Swiss conglomerate selling the fashion e-commerce pioneer to Alibaba.
Around the same time, LVMH Moët Hennessy Louis Vuitton decided to make good on an acquisition effort of its own, the one it had also been quietly (and then not so quietly) working towards: Tiffany & Co. Just a matter of days before the Farfetch-Alibaba-YNAP deal was confirmed, LVMH and Tiffany revealed that they had managed to put their rival lawsuits to bed and come to agreeable terms under which the famed New York-based jewelry stalwart could be brought under the ownership umbrella of the Paris-based luxury goods titan. In exchange for $15.8 billion, LVMH would acquire all shares in the formerly publicly-traded Tiffany & Co.
Both instances come as consolidation has been top of mind in the luxury space, where the biggest groups, such as Louis Vuitton-owner LVMH and Gucci’s parent company Kering, have amassed sizable rosters of brands over the past several decades by way of various fashion and luxury-centric M&A transactions, thereby, enabling them to benefit from sheer size and scale, while making it more difficult for independently-owned brands to compete. The havoc wreaked on brands’ balance sheets by the COVID-19 pandemic and the resulting shift online (and the expenses that come with doing that and doing it well) is expected to accelerate that existing fashion industry M&A activity even further.
“With the financial difficulties [brought about by COVID] in mind, many players, and in particular the smallest, will become more-affordable M&A targets,” according to Isabelle Chaboud, an Associate Professor in the Finance, Accounting and Law Department of Grenoble Ecole de Management. “The most financially solid players – such as LVMH, Kering or Chanel – will no doubt have the option of buying out competitors, subcontractors and even suppliers.” (For a timeline of supplier-specific M&A, you can find that here.)
A Timeline of Transactions
With the foregoing in mind, here is a running timeline of the most recent fashion and luxury-focused M&A and investments dating back to LVMH’s headline-making deal with Tiffany & Co. …
Oct. 8, 2024 – Saudi Public Investment Fund to Acquire 40% Stake in Selfridges
Saudi Public Investment Fund (“PIF”), Saudi Arabia’s sovereign wealth fund, will acquire a 40 percent stake in Selfridges. It will acquire the holding from Signa Group, the Austrian property group that bought Selfridges with the Thai conglomerate Central Group for £4 billion in 2021, for an undisclosed sum. PIF will now own Selfridges Group in partnership with Central Group, with the aim of “accelerat[ing] growth” for the ailing British retail chain, according to the Guardian. PIF said the investment aligns with its strategy of “investing in key strategic sectors globally and is underpinned by a shared vision to unlock further value in Selfridges.”
Oct. 7, 2024 – Richemont to Sell YNAP to Mytheresa
Richemont has signed an agreement for MYT Netherlands parent B.V. Mytheresa to acquire 100% of the share capital of Yoox Net-a-Porter to create what it calls “a global, multi-brand digital luxury group” in exchange for a 33 percent equity stake in Mytheresa. The deal was first reported by TFL.
The parties confirmed in a release that Richemont will sell YNAP to Mytheresa with a cash position of €555m and no financial debt, subject to customary closing adjustments, in exchange for shares to be issued by Mytheresa representing 33 percent of Mytheresa’s fully diluted share capital at closing following issuance of the consideration shares. Richemont will make available a 6-year revolving credit facility of €100 million to finance YNAP’s general corporate needs, including working capital.
As a result of this transaction, Richemont currently expects the write-down of YNAP net assets to amount to approximately €1.3 billion, which also accounts for the cash to be left in YNAP upon completion.
Michael Kliger, CEO of Mytheresa, said: “I am truly excited by today’s announcement. With this transaction, Mytheresa aims to create a pre-eminent, multi-brand, digital, luxury group worldwide. MYTHERESA, NET-A-PORTER and MR PORTER will offer differentiated but complementary multi-brand luxury edits based on curation, inspiration and outmost customer service. The three brands will share a large part of their infrastructure creating synergies and efficiencies while maintaining their different brand identities.”
Sept. 30, 2024 – LVMH Sells Off-White to Bluestar Alliance
LVMH has sold its stake in Off-White to Bluestar Alliance, the New York-based company that owns Elie Tahari, Kensie, Justice, Catherine Malandrino, Nanette Lepore, English Laundry, Brookstone, Joan Vass, Limited Too, Hurley, Scotch & Soda, and Bebe. The terms of the deal between LVMH, which acquired a majority stake in Off-White LLC in 2021, and Bluestar have not been disclosed. The late Virgil Abloh “was a creative pioneer who had a profound impact on the global fashion industry and creative community. Acquiring Off-White represents a unique opportunity for Bluestar Alliance to honor and build upon the enduring legacy of Virgil Abloh,” Joey Gabbay, chief executive officer of Bluestar Alliance, said in a statement.
Sept. 26, 2024 – LVMH Takes Stake in Moncler
LVMH is taking a minority stake in Moncler. The French luxury goods conglomerate revealed that it will acquire a 10 percent stake in Double R, the investment vehicle controlled by Moncler Chairman and CEO Remo Ruffini, which owns a 15.8 percent stake in Moncler. While the terms of the deal have not been disclosed, Double R revealed that it will increase its stake in Moncler up to 18.5 percent over the next 18 months for a total stake of 22 percent as a result of funds provided by the deal with LVMH. Moreover, LVMH will gain two board seats at Double R, one of which will be filled by Antonio “Toni” Belloni, people familiar with the nomination told Bloomberg.
“Moncler has been one of the most significant entrepreneurial success stories in the industry over the past twenty years,” LVMH controlling shareholder and chairman Bernard Arnault said in the statement in connection with the deal. Presumably looking to get ahead of takeover chatter, Arnault stated that he will “support the independence of the Moncler Group.”
Sept. 16, 2024 – Cassandra Grey, Sherif Guirgis to Buy Back Violet Grey
Cassandra Grey and Sherif Guirgis have bought Violet Grey back from Farfetch, the brand’s founder has confirmed. The terms of the deal have not been disclosed but it follows closely from the downfall of e-commerce retailer Farfetch, which was acquired by Coupang late last year. Farfetch acquired Violet Grey in January 2022 in exchange for $49.4 million in cash, $1.3 million of reverse vesting shares and $5.0 million of Farfetch RSUs, and subsequently shuttered its beauty arm in August 2023, announcing that it would offer Violet Grey for sale.
Sept. 12, 2024 – The Row Raises New Funds from Chanel Owners
The Row has reportedly raised new funds in a round that includes Alain and Gerard Wertheimer, the owners of Chanel, and L’Oreal heiress Francoise Bettencourt. According to Bloomberg, the round values the 18-year-old luxury brand at $1 billion. The Wertheimer brothers have acquired their minority stake in The Row via their New York-headquartered family office, Mousse Partners, while Bettencourt has taken a stake in the company via her family office, Téthys. Other investors include Natalie Massenet-run VC Imaginary Ventures and Lauren Santo Domingo’s newly-launch fund, St. Dominique Capital. Together, the new investors’ stake totals almost 40 percent; other details of the investments have not been disclosed.
Sept. 6, 2024 – Nordstrom Family Offers $3.8B for Retailer
The family behind Nordstrom is looking to buy out shareholders of the publicly-traded retailer for $23 a share, which would amount to a $3.8 billion deal. The Nordstrom family, including current CEO Erik Nordstrom and his brother Pete Nordstrom, the company’s executive vice president, have proposed financing the transaction with cash, their existing stake in the company and $250 million in bank financing. At the same time, a group of investors, includes El Puerto de Liverpool, a Mexican real estate and department store company that disclosed a nearly 10 percent stake in Nordstrom in 2022, will also help fund the proposed deal that was revealed in a Nordstrom regulatory filing on September 4 after first being raised in April 2024.
Sept. 5, 2024 – ASOS to Sell Majority Stake in Topshop, Topman
ASOS Plc confirmed that it will sell off a majority stake in its Topshop and Topman brands to Heartland, the “holding company owned by the Holch Povlsen family and their family business BESTSELLER,” in exchange for 180 million pounds ($237 million). By way of a newly-formed joint venture, Heartland will own 75 percent of the two Topshop brands and a unit of ASOS will maintain ownership of the remaining 25 percent. According to ASOS, it will assume design and distribution rights in the two brands in exchange for a royalty fee. The deal is expected to complete in Q4 2024.
Aug. 22, 2024 – Chanel Takes Minority Stake in MB&F
Chanel has acquired a 25 percent stake in high-end watchmaker MB&F in a move that ups the ante for the luxury goods brand in the horology segment. The terms of the deal have not been disclosed, but it has been revealed that Geneva-based MB&F’s founder Maximilian Büsser will retain a majority 60 percent stake in the company (down from 80%) and MB&F’s head of R&D and production Serge Kriknoff will now hold a 15 percent stake.
Aug. 16, 2024 – Club Monaco Owner Regent Acquires Bally
Club Monaco, Escada, and La Senza owner Regent has acquired Bally International A.G. from JAB, the investment vehicle of Germany’s Reimann family. The terms of the deal for the 173-year-old Swiss luxury brand have not been disclosed. “Bally is one of the world’s great heritage luxury brands,” Regent founder and chairman Michael Reinstein said in a statement. “Its legacy, built on over 170 years of timeless design and unparalleled quality, is a testament to refined Swiss elegance and an unwavering commitment to craftsmanship. We are honored to be entrusted with shaping the next chapter of this remarkable story.”
Aug. 7, 2024 – Under Armour Acquires UNLESS COLLECTIVE
Under Armour, Inc. has acquired UNLESS COLLECTIVE, INC. in a deal that was finalized this week. The terms of the acquisition have not been disclosed. Co-founded in 2020 by adidas veteran Eric Liedtke, who will join Under Armour as its Executive Vice President of Brand Strategy, Unless Collective touts itself as “the world’s first all-plant, zero-plastic regenerative fashion brand.” Under Armour said in a statement that Liedtke will be “globally accountable for amplifying Under Armour’s brand identity and storytelling, its comprehensive strategic planning process, and executing transformational initiatives that accelerate growth for UA while continuing to lead and curate, UNLESS.”
Jul. 30, 2024 – Chanel Raises €700M in Private Debt
Chanel has raised €700 million ($758 million) from a private sale of notes that will mature in 10 to 12 years. “The London-based luxury fashion house is the latest big European business to raise debt privately, following similar deals for German engineering firm Robert Bosch Gmbh, Italian chocolatier Ferrero and French drinks maker Remy Cointreau,” according to Bloomberg, which noted that the private placement has enabled Chanel to “directly tap institutional investors, such as insurers, in order to bypass volatility in public credit markets.”
Jul. 17, 2024 – EssilorLuxottica to Acquire Supreme for $1.5B
EssilorLuxottica will acquire Supreme from VF Corporation for $1.5 billion in cash, the companies have confirmed. The deal comes four years after VF Corp bought the streetwear brand for $2.1 billion, with Supreme investors Carlyle Group and New York-based private equity firm Goode Partners agreeing to sell their stakes in the New York-based brand that American-British businessman James Jebbia founded in 1994. The deal, which is expected to close by the end of CY2024, marks the first apparel brand acquisition for the French-Italian eyewear maker.
Jul. 4, 2024 – Hudson’s Bay Co. to Acquire Neiman Marcus Group
Hudson’s Bay Co. will acquire Neiman Marcus and Bergdorf Goodman owner Neiman Marcus Group in a $2.65 billion deal. The deal will result in the creation of a new entity, Saks Global, that combines the Saks Fifth Avenue and Saks OFF 5TH brands, Neiman Marcus and Bergdorf Goodman, and the real estate assets of Neiman Marcus Group and HBC. Amazon – which will work with Saks Global “to offer its expertise in logistics and personalization technology” – will hold a minority stake in the new entity, as will cloud-based software company, Salesforce.
Jun. 26, 2024 – LVMH Acquires Swiss clock maker L’Epee 1839
LVMH has acquired Switzerland-based speciality clock maker L’Epee 1839 and its owner Swiza. The terms of the deal have not been disclosed. L’Epee will be housed within LVMH’s growing Watches division, which is led by Frédéric Arnault. “L’Épée 1839 is at once a beautiful brand with a history that dates back to 1839, internationally recognized and by an audience of watchmaking enthusiasts, but most of all, it has a unique know-how,” Arnault said in a statement. “It is the only one to do what its teams do in the industry and has regrouped under one roof an impressive diversity of crafts.”
Jun. 25, 2024 – Revolve Takes Majority Stake in Alexandre Vauthier
Revolve Group, Inc. has acquired a majority stake in Alexandre Vauthier, confirming that it will invest six million euros ($9.67 million) over the next three years in the ailing French fashion brand, which was placed in administration last year and has been actively seeking a buyer. The deal, the terms of which have not been disclosed, will see “the integration of Revolve’s marketing strategies, data-driven merchandising techniques, and operational infrastructure with Alexandre Vauthier’s iconic brand identity and craftsmanship,” according to a release from the parties. Revolve co-CEO Michael Mente said in a statement, “By integrating our impactful brand marketing strategies and operational excellence with Vauthier’s visionary designs, we are set to ignite a new era of fashion influence in luxury to build an iconic French maison.”
Jun. 25, 2024 – Bernard Arnault Takes Stake in Rival Richemont
Bernard Arnault has taken a stake in Richemont, according to industry reports. Details regarding the LVMH chairman and CEO’s position, which he has taken on in a personal capacity, are sparse, with Bloomberg reporting that the size of the holding is “small” and part of a broader Arnault family-owned portfolio of investments in publicly listed companies.
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