Lanvin Group Raises Over $500 Million, Becomes First IPO for春华's SPAC Vehicle

By Yi Zhang

"An Yong Waves" has learned that on March 23, global fashion luxury group Lanvin Group (Fosun Fashion Group) reached a definitive merger agreement with Primavera Capital Acquisition Corp. (NYSE: PV, "PCAC"). Following the transaction, Lanvin Group will list on the New York Stock Exchange under the ticker symbol "LANV."

The total proceeds from this transaction are expected to reach up to $544 million. Under the proposed business combination, Lanvin Group will become a wholly-owned subsidiary of the combined entity, Lanvin Group Holdings Limited.

The transaction implies a pro forma enterprise value of approximately $1.5 billion for Lanvin Group, with an estimated post-merger market capitalization of approximately $1.9 billion. As part of the transaction, Lanvin Group's existing equity holders will roll 100% of their equity into the combined company, representing approximately 65% ownership of the combined entity.

PCAC is a special purpose acquisition company listed on the NYSE and an affiliate of Primavera Capital Group. Primavera Capital is a leading global investment management firm with approximately $17 billion in assets under management.

Global fashion luxury group Lanvin Group was founded by Fosun International in 2017. Currently, Lanvin Group has nearly 1,200 points of sale and over 300 retail stores across more than 80 countries worldwide, with approximately 3,600 employees. The group's brand portfolio includes Lanvin, Sergio Rossi, Wolford, St. John Knits, and Caruso — five brands with a combined history of more than 390 years.

In recent years, Lanvin Group has continued to invest in digitalization, brand marketing, product category expansion, and global store expansion, and its brands have undergone successful transformations. As a new-generation luxury group, Lanvin Group is committed to leveraging digital technology and channels to strengthen its global sales and marketing strategies and bring it closer to consumers.

The rapid growth of Lanvin, the group's flagship brand, validates the success of its global strategy. In 2018, Lanvin Group acquired the French couture house Lanvin. In 2021, Lanvin's global revenue increased 103% year-over-year, with Greater China and North America growing 122% and 298% respectively. Global e-commerce revenue surged 407% year-over-year, representing a 14-fold increase compared to 2019.

In 2021, Lanvin Group's European operations contributed nearly half of the group's total revenue, while Greater China accounted for only 14% of global revenue and North America 33% — indicating significant untapped potential in Asian and North American markets. Lanvin Group stated that Asia and North America represent the strategic focus of its development. In the fast-growing Asian market, the group and its strategic partners possess geographic advantages and resources for developing international brands. In North America, Lanvin Group has already begun expanding its retail footprint and e-commerce channels, while strengthening local brand partnerships and marketing strategies to drive growth.

The proceeds from this transaction will be used to enhance operations and support future growth initiatives, including brand development and marketing, product category and retail expansion, general working capital, and future investments and acquisitions. Joann Cheng, Chairwoman and CEO of Lanvin Group, stated, "We hope to gradually build a global fashion luxury brand portfolio serving a broader consumer base through organic brand growth and strategic investments and acquisitions."

"Lanvin and Primavera share a common vision and similar philosophy in nurturing and revitalizing world-class luxury brands. We look forward to jointly developing Lanvin's global platform and driving sustainable growth for its portfolio brands," said Tong Chen, Partner at Primavera Capital and Chairman, CEO, and CFO of PCAC.

Going forward, in addition to continuing to drive organic growth across its brands, Lanvin Group will also use the transaction proceeds to invest in high-quality assets across different markets and product categories, continuing to acquire high-end brands with deep heritage and exceptional craftsmanship, creating operational value through global strategy and brand revitalization, and continuously enriching and strengthening its fashion ecosystem.

Additionally, Lanvin Group has adopted a diverse and complementary creative system, including establishing creative hubs in Milan and other locations to gather emerging global creative talent, delivering richer and more diverse creative resources to its brands, and promptly meeting rapidly evolving consumer demands. In 2022, Lanvin Group plans to launch an innovation incubation program to invest in and nurture fast-growing companies with advantages in creative design, digitalization, sustainability, and high-tech supply chains.

Lanvin Group has now built a strategic alliance comprising leading industry players including founding shareholder Fosun International, Itochu Corporation, and K11. These strategic partners will become shareholders of Lanvin Group through pre-IPO financing and private investment in public equity, and will collaborate with Lanvin Group in key areas such as product development, market expansion, brand marketing, and e-commerce — playing an indispensable role in the group's global expansion.

Image source | Visual China