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- 17 Jun 2013
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The Latest Investments: Coty, Versace & Pomellato


Versace is said to be in investment talks with Qatar Holding

Kering acquires a majority stake in the Pomellato group, Coty launches a $1bn IPO in New York, as Qatar Holding sets it’s sights on Versace

Three key trends have defined the luxury industry M&A space in the past eighteen months. Vertical integration of manufacturers and suppliers, by conglomerates and independents alike. Kering – formerly PPR – selling off non-core assets and investing in fashion and jewellery brands such as Christopher Kane, Qeelin and last month, Pomellato. And finally, cash rich Middle Eastern and Chinese investors snapping up so called ‘European bargains’ in the form of luxury brands and vineyards.

Given the latter, it is unsurprising that Christie’s is combining its fine wine and real estate segments to help high-net-worth individuals secure their own vineyards, as a response to high demand from customers in China and Hong Kong. From just nine fine wine sales in Hong Kong in 2012 Christie’s netted $36.9 million, and was allegedly sought out by Asian investors to give advice on purchasing overseas vineyards.

 A clutch of Chinese-bought chateaux are now back on the market, having been purchased as recently as 2011 

But could the trend be reversing? Decanter has revealed that a clutch of Chinese-bought chateaux are now back on the market, having been purchased as recently as 2011. Chateau Villepreux and Chateau Grand Branet in Capian are both up for sale, as are Chateau Baby in Sainte-Foy-Bordeaux and Chateau de Cugat in Blasimon.

Carol Young, director of local agent Bordeaux and Beyond, explained: “The original owner bought the estates with the express intention of renovating them and putting them back on the market. He has invested heavily in the vines and the cellars, and is now offering them with the option of a full Chinese management service, should the new buyers come from China.”

“The seller has many contacts in China, and knows the one thing that holds people back from buying here is fear over how to run the properties.” Alexander Hall, director of Vineyard Intelligence, also confirmed to Decanter that he has heard of several Chinese parties now interested in “buying with a view to selling to a second wave of more cautious buyers”.

Speculation: Versace, Qatar Holding

Qatar Holding, which currently owns UK department store Harrods, is said to be “looking carefully” at the Versace business, alongside investment fund Fondo Strategico Italiano, with which it entered into a joint venture recently to invest in Italian food and luxury brands.

In 2012 Versace CEO Gian Giacomo Ferraris revealed that “the family is evaluating possible alternatives,” but that it “has no intention to sell any shares."

Source: Fashionista

Launched: Coty, IPO

Coty, founded in 1904 by Francois Coty in Paris, filed to go public in June 2012 after dropping a $10.7 billion takeover bid for larger peer Avon Products Inc. The IPO raised about $1 billion and valued the New York-based company at about $6.70 billion.

Source: Reuters

Finalised: Aston Martin, Investindustrial

Aston Martin and Investindustrial have finalised a deal that will see a 35% stake in the automaker sold to the Italian private equity group. Investindustrial is paying £150 million for the stake and has promised to add further capital increases in the coming years.

Source: Motor Authority

Bought: Corum, China Haidian

Montres Corum has announced the whole acquisition of its shareholding by China Haidian Holdings Limited. The group’s primary activity is the manufacture of proprietary watch brands and the distribution of both proprietary and selected Swiss luxury watch brands in China and throughout Asia.

Source: FHH

Speculation: Hugo Boss, Permira

Permira is looking to dispose of 7 million Hugo Boss shares, or about 10% of the total, in an accelerated bookbuilding, the London-based private-equity firm said in a statement. Permira inherited the stake when it bought a majority holding in 2007 in Milan-based Valentino Fashion Group SpA, Hugo Boss’s parent company at the time.

Source: Bloomberg

Acquired: Pomellato, Kering

Kering announces the signing of an agreement with RA.MO S.p.A to acquire a majority stake in the Pomellato group. The transaction is subject to the approval of the competition authorities and is expected to be finalized in the coming weeks. Andrea Morante will remain CEO of the company.

Source: Kering

Offer: La Perla, SMS Finance

Investment fund SMS Finance controlled by Silvio Scaglia has won the bid to acquire Italian luxury lingerie manufacturer La Perla, for a reported sum of €69 million. SMS Finance outbid Calzedonia (Italy) and Delta Galil (Israel) and will invest up to €100 million into La Perla’s expansion.

Source: CPP Luxury

Stake: Sanin, Loro Piana

Loro Piana has acquired 60% of vicuna firm Sanin SA for a reported $1.6 million. Known for its fine wools and cashmeres, the Argentinian alpaca firm owns the right to shear 210,000 vicunas in the province of Catamarca. The investment will assist Loro Piana to further develop products with the finest and rarest wool in the world.

Source: WWD

Speculation: Dailan Wanda, Sunseeker

China’s Dalian Wanda is said to be in talks to buy British yacht maker Sunseeker. “Sunseeker is in discussions with a third party over the sale of a majority stake in the business,” the yacht maker said in a statement. A company source confirmed a report that Wanda was expected to complete a 300 million pound takeover by the end of the month.

Source: Reuters

For more in the series of The Latest Investments, please see our most recent editions as follows:

- The Latest Investments: Gucci, Printemps & Buccellati
- The Latest Investments: Qatar, Richemont & LVMH
- The Latest Investments: Harry Winston, Marni & Labelux


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