Billionaire Guo Guangchang’s Lanvin Fashion House To Start Trading In New York With SPAC Deal Approved

Lanvin Group, controlled by Chinese billionaire Guo Guangchang’s Fosun International, will begin trading in New York on Thursday after shareholders of China-based blank check firm Primavera Capital Acquisition Corp. approved the merger with the global fashion house.

The SPAC transaction, which is expected to close tomorrow, is worth $1 billion to Lanvin. That’s less than the $1.25 billion pre-money equity value when the deal was first announced in March. Since then, market volatility has increased as central banks tightened interest rates to rein in inflation.

“As we continue to seize untapped growth opportunities worldwide, we believe adjusted valuation provides a highly compelling entry point for investors,” said Joann Cheng, president and CEO of Lanvin Group, in October when the company announced its interim results. Under the deal, the combined asset 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, supported by strong sales in Asia, Europe and North America. Despite the Covid-19 restrictions in China, sales in Asia’s largest economy rose 32% year-on-year in the first half.

“We’ve built an iconic portfolio of traditional brands and have seen strong growth in recent years,” said Cheng. “Our strategy going forward is to drive continued organic growth for our brands through geographic, channel and product expansion, along with disciplined investments in the luxury fashion sector.”

The roots of the Lanvin brand can be traced back to France’s oldest fashion house, founded in 1889 by French fashion designer Jeanne Lanvin. The group is currently headquartered in Shanghai, where its parent company, Fosun, is also located. Lanvin and Italian shoemaker Sergio Rossi own and manage other iconic brands including Austrian lingerie brand Wolford, American womenswear St John Knits and Italian menswear brand Caruso.

Lanvin’s parent company, registered in Hong Kong, builds international brands, including Club Med. Apart from tourism, Fosun also has interests in mining, medicine and steel production. It was co-founded in 1992 by Guo and three classmates from Fudan University in Shanghai. Guo’s net worth is $3.5 billion forbes‘ real-time data.

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