Pedestrians walk past a Lanvin boutique in Tokyo, Japan.
Lanvin Group—controlled by Chinese billionaire Guo Guangchang’s Fosun International—will start trading in New York on Thursday after shareholders of China-based blank-check company Primavera Capital Acquisition Corp. approved the merger with the global fashion house.
The SPAC transaction, which is expected to close tomorrow, values Lanvin at $1 billion. That’s lower than the pre-money equity value of $1.25 billion when the deal was first announced in March. Since then, market volatility has increased as central banks tightened interest rates to tame inflation.
“We believe the adjusted valuation establishes a highly compelling entry point for investors as we continue to capture untapped growth opportunities across the world,” Joann Cheng, chairman and CEO of Lanvin Group, said in October when the company announced its interim results. Under the deal, the combined entity will raise $544 million from the initial public offering.
Lanvin’s revenue increased 73% to €202 million ($213 million) in the first six months of the year, bolstered by robust sales across Asia, Europe and North America. Despite Covid-19 restrictions in China, sales in Asia’s largest economy improved 32% in the first half compared to the previous year.
“We have built an iconic portfolio of heritage brands and recorded strong growth over recent years,” Cheng said. “Looking forward, our strategy is driving continuous organic growth through geographic, channel and product expansion for our brands, combined with disciplined investment in the luxury fashion sector.”
The Lanvin brand traces its roots to France’s oldest fashion house, which was founded by French fashion designer Jeanne Lanvin in 1889. The group is currently headquartered in Shanghai, where its parent Fosun is also based. It owns and manages Lanvin and other iconic brands such as Italian shoemaker Sergio Rossi, Austrian lingerie brand Wolford, American womenswear St John Knits and Italian menswear brand Caruso.
Lanvin’s Hong Kong-listed parent has been building international brands including Club Med. Apart from tourism, Fosun has interests in mining, pharmaceuticals and steelmaking. It was cofounded in 1992 by Guo and three classmates from Shanghai’s Fudan University. Guo has a net worth of $3.5 billion, according to Forbes’ real-time data.