Richemont, parent company of Azzedine Alaïa, Cartier, Chloé, and more, has announced that it has put in a €2.7 billion, or $3.3 billion, bid to purchase the Yoox Net-A-Porter Group.
According to an article on The Business of Fashion, Richemont has announced that it has put in a €2.7 billion bid to purchase the Yoox Net-A-Porter Group. The company wants to purchase what shares it doesn’t already own which is about 50% of the company at €38 per share.
Richemont is already the company’s largest shareholder but the offer still puts an almost 26% premium over the company’s Friday closing price on the Milan Bourse, Italy’s stock exchanges, of €30.26 per share.
The company had revenue increase by about 12% to $2.5 billion, or €2.1 billion, in 2017 and it is said that it will be the biggest company in luxury e-commerce in the next couple of years. So, it’s not surprising that other companies would want to increase their sales and profits with a deal like this.
The deal won’t be made until it’s approved by Yoox Net-A-Porter shareholders, but CEO Federico Marchetti seems to be excited about the deal.
Richemont Chairman Johann Rupert released a statement saying,
“we are very pleased with the results achieved by Yoox Net-a-Porter Group’s management team, led by Mr Federico Marchetti, and we intend to support them going forward to execute their strategy and further accelerate the growth of the business. Thanks to our long-term commitment and resources, we see a meaningful opportunity to strengthen further Yoox Net-a-Porter Group’s leading positioning in luxury e-commerce, growing the business in existing and new geographies, increasing product availability and range, and continuing to develop unparalleled services and content for today’s highly discerning consumers.”
Marchetti released a statement saying,
“Richemont explained that the rationale for the investment is to build on YNAP’s solid track record of growth. Richemont aims to provide additional resources that further strengthen and accelerate YNAP’s long-term leadership in online luxury. This means investing even more in product, technology, logistics, people and marketing.”
Yoox Net-A-Porter Group will continue to operate as a separate company and continue to sell products from brands that Richemont doesn’t own.
So, what do you think? Will Richemont purchase the Yoox Net-A-Porter Group? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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