Business / Business of Luxury

Lanvin Set For New York Listing Via SPAC Deal

The fashion firm has been valued at US$1.5 billion, and expects to raise up to $544 million in the upcoming deal.

Mar 23, 2022 | By Terence Ruis

Global luxury fashion group Lanvin has announced that it will be entering an agreement that will list Lanvin Group on the New York Stock Exchange. The agreement will see the industry stalwart merge with Primavera Capital Acquisition Corporation, an affiliate of Primavera Capital Group which is a leading global investment firm with over US$17 billion of assets under management.

The move makes Lanvin the second high-profile fashion company to pursue a special purpose acquisition company (SPAC) deal since Ermenegildo Zegna’s move late last year. The new deal between Lanvin Group and Primavera Capital Acquisition Corporation values the fashion firm at US$1.5 billion, according to a statement.

Lanvin Group expects to raise up to $544 million in the deal, including up to $414 million of cash in the trust account and fully committed PIPE subscription, as well as forward purchase agreements of $130 million from investors. This includes Fosun International Limited, ITOCHU Corporation, Stella International Limited, Baozun Hong Kong Investment Limited, Golden A&A, Aspex Master Fund and Sky Venture Partners L.P. According to a statement, the proceeds from this deal will be used to “accelerate the organic growth of Lanvin Group’s brand portfolio, and to fund future acquisitions that enrich its luxury fashion portfolio”.

Lanvin Group, which currently operates in over 80 countries with 1,200 points of sales and more than 300 stores, expects to open over 200 new stores by 2025.

Joann Cheng, Chairman and CEO of Lanvin Group, has described the new deal as another milestone in Lanvin Group’s journey. “We are excited to partner with Primavera for our next chapter of growth across Europe, North America and Asia. In recent years, we have not only invested in prestigious heritage brands but have also created a strategic alliance of industry-leading companies as partners and co-investors in Lanvin Group,” she said. “We plan to accelerate the growth of our portfolio via both organic development and disciplined acquisitions, building a global portfolio of iconic luxury fashion brands that appeal to a broad customer base.”

There’s no question that the challenge to become the most formidable fashion conglomerate apart from LVMH, Kering and Richemont has become lively. Zegna’s December IPO move made it the first Italian luxury fashion brand to be listed on the New York Stock Exchange. In that deal, Zegna raised $761 million which will also go towards opening new stores — as well as branch out from offering its staple suits.

Needless to say, for fashion — and business — enthusiasts across the globe, there hasn’t been a more exciting time for the industry.

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