Luxury Fashion Lanvin Group IPO in NYSE SPAC Merger at $1.31 Billion Market Value, Falls 45% after 1 Week to $810 Million Market Value
22nd December 2022 | Hong Kong
Lanvin Group, a global luxury fashion group that owns the oldest operating French couture house Lanvin, has IPO on New York Stock Exchange through a SPAC merger with Primavera Capital Acquisition Corporation valuing Lanvin Group at $1.31 billion (15/12/22) at $10 per share, with share price falling to $5.50 after 1 week (21/12/22) with $810 million market value. Lanvin Group, established by Fosun International in 2017, is headquartered in China, managing luxury brands worldwide including Lanvin, Sergio Rossi, Wolford, St. John Knits and Caruso. Primavera Capital Acquisition Corporation (SPAC) is an affiliate of Primavera Capital Group, a $17 billion investment firm founded by former Goldman Sachs Greater China Chairman Fred Hu with over 60 portfolio companies including Alibaba, ByteDance, Kuaishuo, Ant Group, Sensetime, Lufax, Goto, Didi, Nio, Palantir, Postal Savings Bank of China, Focus Media and Mead Johnson. See below for NYSE announcement & Lanvin Group SPAC announcement.
“ Luxury Fashion Lanvin Group IPO in NYSE SPAC Merger at $1.31 Billion Market Value, Falls 45% after 1 Week to $810 Million Market Value “
Lanvin Group Debuts on NYSE under Ticker “LANV”
15th Dec 2022 – Lanvin Group (the “Group”), a global luxury fashion group, and Primavera Capital Acquisition Corporation (NYSE: PV) (“PCAC”), today announced the completion of their business combination and the listing of the shares and warrants of Lanvin Group Holdings Limited (“LGHL”) under the new ticker symbols “LANV” and “LANVW.” The proceeds of the transaction will be used to accelerate the organic growth of the Group’s brand portfolio and to fund strategic acquisitions that enrich its luxury fashion portfolio.
Ms. Joann Cheng, Chairman and CEO of Lanvin Group, said: “Listing on the NYSE today marks an important milestone in our strategy to build a portfolio of iconic luxury fashion brands. The Group’s rapidly improving performance in recent years has demonstrated the strength of our global platform and the success of our innovative growth strategy.
“Notwithstanding the market environment, we are particularly pleased by the strength of support and the validation of our strategy we have received from numerous new strategic investors since the plan to list was first announced in March. Together with our brands and partners, we are confident in delivering significant upside potential and long-term value for our shareholders as we continue to solidify our foundation in Europe and capture the many as-yet untapped opportunities in the North American and Asian markets.”
The transaction received strong support from a roster of investors ahead of the listing, including an aggregate US$193 million of fully committed PIPE subscription and forward purchase from Fosun International Limited, ITOCHU Corporation, Stella International Limited, Baozun Hong Kong Investment Limited, Golden A&A, Handsome Corporation and Aspex Master Fund. As announced previously, Fosun Fashion Holdings (Cayman) Limited also upsized its PIPE subscription investment from $38 million to approximately US$133 million, including the conversion of approximately US$95 million in existing shareholder loans and accrued interest into equity. In addition, Meritz Securities Co., Ltd made a US$50 million equity investment in the Group in a private placement.
She continued, “We have ambitious plans for the future. With over US$150 million raised in cash proceeds and no debt at the Group level, we are now more than ever well-positioned to accelerate growth across our portfolio with our unique proposition to transform heritage for tomorrow’s customers.”
Mr. Max Chen, Chairman and CEO of PCAC, and Partner of Primavera Capital, who has joined the LGHL’s Board of Directors, said: “We are proud to partner with Lanvin Group as LGHL moves forward as a public company. We are confident the Group will further develop its fast-growing global business to become a unique global luxury powerhouse by leveraging the rich heritage of its brand portfolio and its differentiated business strategy. We look forward to working together with the management team to support the growth of the company’s top-class luxury brands and create long-term value for shareholders.”
Building on its strong momentum in recent years, the Group strives to continue to drive the long-term sustainable growth of its portfolio brands through product category innovation, global retail expansion, and digital transformation. The Group will also leverage the expertise and resources of its strategic alliance of industry-leading partners along the luxury fashion value chain, coupled with its unparalleled access to the fastest-growing luxury fashion markets, to support the brands’ development across the world.
In the first six months of 2022, the Group recorded revenue of €202 million, representing industry-leading growth of 73%, compared to the same period in 2021, underscoring the success of its growth strategies.
Advisors
Cantor Fitzgerald & Co. is acting as exclusive financial advisor to Lanvin Group. Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are acting as joint capital market advisors to Primavera Capital Acquisition Corporation. Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Cantor Fitzgerald & Co. are acting as joint placement agents on the PIPE.
DLA Piper is serving as legal advisor to Lanvin Group. Simpson Thacher & Bartlett LLP and Davis Polk & Wardwell LLP are serving as legal advisors to PCAC. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor to the joint placement agents.
The Group manages a portfolio of five iconic heritage brands:
- Founded in 1889, Lanvin is the oldest operating French couture house. Building on its rich legacy, the brand has further deepened its presence in the fast-growing North American and Asian markets through retail expansion and digital transformation. A reimagined global product and merchandising strategy brings new focus to an elegant, avant-garde silhouette and attitude. The recent launch of the “Lanvin Character Studies” image campaign – a reflection on what Jeanne Lanvin called ‘the ultimate chic’ – underscores this evolution, marking a fundamental shift in visual aesthetics as the house prepares for its next chapter of growth.
- Wolford, established in Austria in 1950, is one of the world’s leading brands and manufacturers of women’s skinwear in the upper premium segment. Having created the world’s first seamless nylon stockings in 1954, the hosiery specialist has continued to champion innovation and ventured into bodywear and athleisure with the introduction of The W collection in 2020. In recent years, it has launched acclaimed collaborations with Amina Muaddi, Alberta Ferretti, GCDS, Mugler and Sergio Rossi, among others.
- Sergio Rossi is an Italian luxury shoemaker with exquisite know-how and heritage in footwear. In 2022, the made-in-Italy luxury brand joined hands with Area NYC and Wolford to launch exclusive capsules that showcased a synergy of expertise enhanced by modernity and innovation. It was also the Group’s first brand to have successfully transitioned onto the Group’s new shared digital platform powered by Shopify’s technologies in North America.
- St. John is an American luxury house founded in 1962 on the premise of a simple, elegant, and versatile knit dress. The Southern California-based brand has evolved over the years, but the foundation of the collection remains the same today as it did from the very start – great American design, understated and timeless elegance, unsurpassed quality, and craftsmanship that has remained synonymous with powerful women doing the exceptional.
- Founded by a Neapolitan tailor more than 60 years ago, Caruso has grown to become the reference player for luxury tailoring development and production and a long-term partner of the most iconic French, Italian and American Maisons. The company’s own brand, Caruso, is the pinnacle of its know-how, coupled with a Playful Elegance approach to menswear that has conquered loyal customers around the world through more than 200 exclusive luxury stores. Playful Elegance is proudly Made-in-Italy but knows no borders.
- With over 390 years of combined history, these five brands have far-reaching global presence, operating in more than 80 countries with approximately 1,200 points of sales, 3,600 employees and over 300 retail stores across the world.
Luxury Fashion Lanvin Group to List in NYSE SPAC Merger at $1.9 Billion Market Value
26th March 2022 – Lanvin Group, a global luxury fashion group that owns the oldest operating French couture house Lanvin, will be listed on New York Stock Exchange through a SPAC merger with Primavera Capital Acquisition Corporation and valuing Lanvin Group at $1.9 billion. Lanvin Group, established by Fosun International in 2017, is headquartered in China, managing luxury brands worldwide including Lanvin, Sergio Rossi, Wolford, St. John Knits and Caruso. Primavera Capital Acquisition Corporation (SPAC) is an affiliate of Primavera Capital Group, a $17 billion investment firm founded by former Goldman Sachs Greater China Chairman Fred Hu with over 60 portfolio companies including Alibaba, ByteDance, Kuaishuo, Ant Group, Sensetime, Lufax, Goto, Didi, Nio, Palantir, Postal Savings Bank of China, Focus Media and Mead Johnson. The transaction is expected to close in 2H 2022, and the business of the Group will operate under the Lanvin Group name and will apply to be listed on the NYSE under the ticker symbol “LANV”. As part of the transaction, all of Lanvin Group’s existing shareholders will roll 100% of their shares in Lanvin Group into the PubCo, representing in the aggregate approximately 65% of PubCo. Lanvin Group will receive proceeds of up to US$544 million, including up to US$414 million of cash currently held in PCAC’s trust account, fully committed PIPE subscription and forward purchase agreements of US$130 million in the aggregate from investors including 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. (SPAC ~ Special Purpose Acquisition Company, also known as “blank cheque company”)
Lanvin Group, $1.9 Billion
The transaction values Lanvin Group at a pro forma enterprise value of US$1.5 billion, with a combined pro forma equity value of up to US$1.9 billion.
Ms. Joann Cheng, Chairman and CEO of Lanvin Group, said: “Today’s announcement marks another milestone in Lanvin Group’s growth 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. Each of these partners is uniquely qualified to help drive growth, enhance the performance of our brands and unlock the full potential of new markets. 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. Lanvin Group will not only enable these brands to flourish in their home countries, but also in Asia and North America, the largest luxury markets in the world.”
Mr. Max Chen, Chairman, CEO & CFO of PCAC, and Partner of Primavera, said, “We have been looking to support an emerging leader in the consumer sector with enduring global appeal and significant growth prospects in Asia. In Lanvin Group, we see a unique global business with a rich heritage, an entrepreneurial management team, and a differentiated strategy to build a luxury powerhouse for a new generation of consumers, especially benefiting from surging luxury consumption in Asia. Lanvin Group and Primavera share the same vision of nurturing and reinvigorating world-class luxury brands. We look forward to working together to further develop Lanvin Group’s global platform and drive growth across its brand portfolio.”
About Lanvin Group
Lanvin Group, formerly known as Fosun Fashion Group, is the leading global luxury fashion group headquartered in Shanghai, China, managing iconic brands worldwide including Lanvin, Sergio Rossi, Wolford, St. John Knits, and Caruso. Harnessing the power of its unique strategic alliance of industry-leading partners in the luxury fashion sector, Lanvin Group strives to expand the global footprint of its portfolio brands and achieve sustainable growth through strategic investment and extensive operational know-how, combined with an intimate understanding and unparalleled access to the fastest-growing luxury fashion markets in the world. For more information, please visit www.lanvin-group.com.
About Primavera Capital Acquisition Corporation
Primavera Capital Acquisition Corp. (NYSE: PV, “PCAC”), is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. PCAC is an affiliate of Primavera Capital Group (“Primavera”), a leading alternative investment management firm. With offices in Beijing, Hong Kong, Singapore and Palo Alto, Primavera manages both USD and RMB funds for prominent financial institutions, sovereign wealth funds, pension plans, endowments, corporations and family offices around the world. As of September 30, 2021, it had assets under management of approximately US$17 billion. Primavera employs a flexible investment strategy comprised of buy-out/control-oriented, growth capital and restructuring investments. Having accumulated extensive experience in structuring and executing cross-border investment transactions, Primavera seeks to create long-term value for its portfolio companies by combining deep local connectivity in China with global experience and best practices. For more information, please visit www.primavera-capital.com.
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