Lanvin Group, controlled by Chinese billionaire Guo Guanchang Fosun International, will begin trading in New York on Thursday after shareholders of China-based blank check firm Primavera Capital Acquisition Corp. approved a merger with the global fashion house.
The SPAC transaction, which is expected to close tomorrow, values Lanvin at $1 billion. That’s less than the $1.25 billion upfront price when the deal was announced in early March. Since then, market volatility has increased as central banks have tightened interest rates to curb inflation.
“We believe the adjusted valuation will establish a very important entry point for investors,” said Joan Cheng, Lanvin Group’s chairman and CEO, when the company announced its interim results.
Lanvin’s revenue rose 73% to 202 million euros ($213 million) in the first six months of the year, boosted by strong sales across Asia, Europe and North America. Despite Covid-19 restrictions in China, sales in Asia’s largest economy rose 32 percent in the first half compared to last year.
“We have built an iconic portfolio of heritage brands and experienced strong growth in recent years,” Cheng said. “Looking forward, our strategy is driving continued organic growth across geographic, channel and brand expansion for our brands, combined with disciplined investment in the luxury fashion sector.”
The Lanvin brand finds its roots in France’s oldest fashion house, founded in 1889 by French fashion designer Jeanne Lanvin. The group is currently headquartered in Shanghai, where its parent Fosun is also based. It owns and manages Lanvin and others such as Italian shoemaker Sergio Rossi, Austrian underwear brand Wolford, American womenswear St. John’s Knits and Italian menswear brand Caruso.
Lanvin’s Hong Kong-listed parent is building global brands including Club Med. In addition to tourism, Fosun has interests in mining, pharmaceuticals and steel. Founded in 1992 by Guo and three classmates from Shanghai Fudan University. Guo claims to have a net worth of $3.5 billion. ForbesReal time data.
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