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
RETAIL
The Latest Investments: Coty, Versace & Pomellato
This is the featured image caption
Credit: This is the featured image credit
Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.
PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.
In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”
The Fondation Cartier pour l’Art Contemparain building in Paris
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
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 Mainland 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
Creative Strategist, Digital
Sophie Doran is currently Senior Creative Strategist, Digital at Karla Otto. Prior to this role, she was the Paris-based editor-in-chief of Luxury Society. Prior to joining Luxury Society, Sophie completed her MBA in Melbourne, Australia, with a focus on luxury brand dynamics and leadership, whilst simultaneously working in management roles for several luxury retailers.
