Despite the cancellation of more than twenty European IPO’s this year, both Prada and Salvatore Ferragamo launched initial public offerings this month, on the Hong Kong and Milan stock exchanges respectively. Ferragamo was delighted to announce price rising by up to 6.17 percent on the first day of trading, whilst Prada reported increases of just 1.3 percent.
The IPO is becoming increasingly popular in the luxury world, particularly in fashion, with both Brunello Cuccinelli and US department store chain, Neiman Marcus Group, rumoured to be listing in 2011/2012. Such rumours appear at the same time The Carlyle Group, pulled the plug on a planned IPO for Moncler, instead opting to bring in French private equity group Eurazeo, and as acquisitions by conglomerates are as common as seasonal collections.
As to the success of various methods of expansion and growth, only time and the market will tell who will prosper, in the meantime we present a round-up of the need to know investment activity in the luxury sector.
Bought, Le Tanneur & Cie, Qatar Luxury Group
Qatar Luxury Group recently acquired 55 percent of shares and voting rights of the Le Tanneur & Cie, a Euronext Paris listed company. The group will next announce a public offer for the outstanding capital, in accordance with the General Regulations of the Financial Markets Authority.
Launch, Salvatore Ferragamo, IPO
Salvatore Ferragamo launched its IPO on Wednesday 29th June, on the Milan Stock Exchange. Shares were priced at €9 each, generating €344 million, which values the group at 1.5 billion euros.
Sale, Aston Martin, Bonds
Aston Martin announced an intention to raise £300 million in seven-year senior secured notes, in an attempt to finance future growth and refinance existing bank loans.
Stake, Moncler, Eurazeo
Cancelling a planned IPO for Moncler, controlling shareholder The Carlyle Group, instead sold a 45 percent stake to French private equity group, Eurazeo, for €418m. The deal values the company at €1.2bn. Carlyle will retain 17.8 percent of the company, whilst creative director, Remo Ruffini, retains 32 percent.
Funding, Moda Operandi
The brainchild of Lauren Santo Domingo, members-only shopping website Moda Operandi, secured $10 million in series B funding, led by New Enterprise Associates. The lead backer was reportedly chosen for its presence in Asia: NEA has offices in Beijing, Shanghai, Bangalore and Mumbai.
Speculation, Michael Kors
Michael Kors is rumoured to be selling off 25 percent of his business. Some media sources suggest the brand is favouring an IPO, whilst others believe Joel Horowitz and Tommy Hilfiger, could be set to invest.
Launch, Prada, IPO
Prada launched its IPO on the Hong Kong Stock Exchange, on Friday 24th July. Shares were priced at HK$39.50 each, raising HK$16.72 billion ($2.14 billion).
Sold, Rémy Cointreau Champagne division, EPI
Rémy Cointreau sold its Champagne division to Société Européenne de Participations Industrielles (EPI), a French luxury goods
firm, for $593 millon. The sale includes the Charles and Piper-Heidsieck Champagne labels and production facilities.
Bought, Belstaff, Labelux
Adding to its existing portfolio, including Bally and Jimmy Choo, Labelux announced the acquisition of UK brand Belstaff, reportedly for $161 million. It has also been reported that Tommy Hilfiger and Harry Slatkin have invested in the label, where Slatkin will become Belstaff’s chief executive and Hilfiger will work as a business consultant.
Stake, L Capital, TWC L’Amy
Investment subsidiary of LVMH, L Capital, announced the acquisition of 35 percent of TWC L’Amy, a company specialising in watches, jewellery, sunglasses and leather goods. The entry of L Capital is said to accelerate expansion activities, particularly in Asia.
Bought, Laboratoires Dermatologues d’Uriage, Puig Holdings
Corporacion Exea Empreserial, the Puig family holding, has joined forces with Invest M3, owned by Herve Lesieur (president of Payot), to acquire Uriage Laboratories, a French dermo-cosmetic specialist for an unspecified amount.