Acquisitions in the Fashion Business are Increasing
In the current economic climate, there is an opportunity for those with the resources to seize it. As the global macro environment and the fashion retail industry continue to falter, megacorps and private equity investors with deep pockets are looking for ways to invest their capital.
In the first quarter of this year, global fashion, sports and beauty brands entered a period of exuberance in the capital market. The beauty market became more active in mergers and acquisitions, with niche fragrance brands becoming popular targets. In the context of a volatile market, some companies are pursuing initial public offerings (IPOs), while others are temporarily exiting the market. It is clear that this round of consolidation will result in a new landscape for global fashion, sports, and beauty retail.
Blackstone to reach takeover deal with L'Occitane
US private equity giant Blackstone Group is in the final stages of reaching a takeover deal with L'Occitane. It is expected that the group may work with L'Occitane chairman Reinold Geiger on the takeover, with the deal likely to be formally announced in the coming days. In February of this year, Blackstone Group conducted preliminary due diligence to assess the possibility of making a takeover offer for L'Occitane.
Chanel has acquired JY BH, a French manufacturer specialising in high-end and luxury ready-to-wear
The acquisition was made in March with the intention of further strengthening Chanel's industrial chain. In 2005, PR3 was acquired, which specialises in cutting and sewing the sleeves of garments. Two further workshops, Confection de Sully and Domcia Production, were acquired in 2013, creating a design office responsible for the development of womenswear and menswear collections.
L'Occitane acquires Italian high-end home fragrance brand Dr. Vranjes Firenze
The L'Occitane Group has announced that it will be acquiring the Italian home fragrance brand Dr. Vranjes Firenze in order to further expand its portfolio of brands. The exact amount of the deal and other information have not been disclosed. Dr. Vranjes Firenze was established in 1983 by Dr. Paolo Vranjes and sells home fragrances, scented candles, and a wide range of perfumery products. The company has a presence in 75 countries, with 28 directly-managed boutiques and a total of 650 retail outlets. Last year, the company generated a turnover of approximately 43 million euros.
LVMH-controlled private equity fund rumoured to buy affordable beauty brand Kiko
Italian media reports that LVMH-controlled private equity firm L Catterton is in exclusive talks with the Percassi family, owners of make-up brand Kiko. The Percassi family founded Kiko in Italy in 1997 and it is popular with consumers for its wide selection of products and cost-effective prices.
Chanel owner rumoured to buy Prada
The Wertheimers, owners of Chanel, are rumoured to be interested in acquiring the Prada Group through their family office. At the end of last year, representatives of the Wertheimer family met with Miuccia Prada, the creative director of the Prada Group, and Lorenzo Bertelli. The Wertheimer family proposed a purchase price of around 6 billion euros, which was rejected. Subsequently, Lorenzo Bertelli denied the acquisition. Some analysts believe that the delay in the Prada Group's planned secondary listing on the Milan Stock Exchange is related to the potential deal.
