FASHION LAW: GIORGIO ARMANI AND OTHER MERGERS AND ACQUISITIONS

ABSTRACT

A growing number of M&A deals and investment rounds are bringing together some of the biggest names in the fashion and luxury space. LVMH Moët Hennessy Louis Vuitton and Tiffany & Co. came to terms under which wherein in an exchange of $15.8 billion, LVMH would acquire all share of Tiffany & Co.

INTRODUCTION

Whatever the reason, it cannot be denied that mergers and acquisitions are a often incidence when it comes to business. A merger or acquisition may even go through due to reasons that may be entirely unrelated to business or company affairs such as the personal preference of top management and so on. M&A has historically proven enormously successful for the world’s leading fashion companies, which, by most critical accounts, have been able to successfully exploit their size without diminishing the value of their brands. Companies seeking to grow through M&A have “chosen vertical integrations in order to strengthen their positions inside the pipeline; others have implemented horizontal growth by acquiring competitors or companies with related product lines.”

RECENT LUXURY FASHION ACQUISITIONS AND MERGERS

H$M group and Lululemon are leading investors of $240 million funds to support new program to emerge. “We believe it provides a powerful mechanism to overcome the challenges of getting new solutions implemented by the industry, and thereby accelerate the progress on climate action.”

Farfetch will acquire brand Violet Grey, “Farfetch has a really strong track record for acquiring really special, founder-led brands and celebrating and protecting that kind of brand equity, ”Grey said in statement in connection with the confirmation of the deal. “The acquisition gives Farfetch a solid presence in the beauty market, which is complementary to its existing offer. This should allow it to generate more spend from existing customers and potentially attract new ones too. It also rounds out Farfetch’s fashion credentials by moving them beyond apparel,” says Neil Saunders, managing director of Global data’s retail division.

Aeffe Takes Full Control of Moschino acquiring over 40 per cent of Moschino, it also owns Alberta Feretti, Aeffe is acquiring the shares from Sinv, a supplier specialised in producing circulation lines for designer and luxury brands. With M&A heating up in the Italian luxury space, the deal included an “anti-embarrassment” clause requiring Aeffe to compensate Sinv should it resell the shares at a higher value within the next 24 months.

Nordstrom Takes Stake in Four ASOS Brands, it has taken control of Topshop, Topman, Miss Selfridge and the activewear label HIIT to benefit from the joint venture for investment in these brands will not only help drive their growth globally, but will also set the stage for a broader strategic partnership with Asos.

Ferrari owner Exor takes 24% stake in Louboutin, According to a joint statement, the 541 million euro investment will give the Agnellis two seats out of seven on the Louboutin board. “Exor’s commitment to building great companies makes it an excellent partner for Christian Louboutin at a moment when this established brand is poised to capture significant new opportunities,”. In addition to Christian Louboutin and Ferrari, Exor is also the largest shareholder in luxury sports car Stellantis, the world’s sixth-biggest automobile manufacturer created in January from the merger of Fiat Chrysler and rival PSA.

LVMH and Tiffany & Co. agree to $15.8 billion M&A, Bernard Arnault, Chairman and Chief Executive Officer of LVMH, commented: “I am pleased to welcome Tiffany and all their talented employees in our Group. Tiffany is an iconic brand and a quintessential emblem of the global jewelry sector. We are committed to supporting Tiffany, a brand that is synonymous with love and whose Blue Box is revered around the world, with the same dedication and passion that we have applied to each of our prestigious Maisons over the years. We are optimistic about Tiffany’s ability to accelerate its growth, innovate and remain at the forefront of our discerning customers’ most cherished life achievements and memories. I would like to thank Alessandro Bogliolo and his team for their dedication to Tiffany and their work over the past three years, especially during this challenging period.”

The two companies will settle pending litigation in Delaware Chancery Court. Tiffany had sued LVMH asking the court to make the luxury goods company abide by the merger agreement.

Exor N.V. and Giorgio Armani, John Elkann Engaged in M&A Talks

In an interview with Vogue, Armani revealed that he is with the idea of trading in his celebrated brand’s long-standing status as an independently-held entity and partnering with an established group, TFL reported that the most likely entity to acquire the 46-year-old fashion house is Exor N.V. In addition to sizable stakes in reinsurance company PartnerRe Ltd., Italian football club Juventus F.C., Italian media group GEDI Gruppo Editoriale, publisher Economist Group, capital goods entity CNH Industrial N.V., and Stellantis, which is the result of the recent merger between Fiat Chrysler Automobiles group and French automotive group PSA, Exor has been steadily building out its presence in the luxury space beyond its controlling stake in Italian automaker Ferrari.

REFERENCES

https://www.fashionlaw.co.uk/m-and-a/

https://fashionlawjournal.com/

https://annualsurveyofamericanlaw.org/mergers-and-fashion/

https://www.thefashionlaw.com/

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