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Salvatore Ferragamo secures $42 mn deal for full control in China JVs

27 Oct '23

2 min read

Pic: Ferragamo/LinkedIn

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Salvatore Ferragamo's board has approved a $42 million deal to acquire minority stakes in three joint ventures in the Greater China area.
The stakes include 25 per cent of Ferragamo Moda (Shanghai) and Ferrimag Limited, and 24.8 per cent of Ferragamo Retail Macau Limited.
The deal aligns with Ferragamo's 2022 Strategic Plan to expand in Greater China.

Salvatore Ferragamo’s board of directors has unanimously approved the acquisition of minority stakes in three joint ventures aimed at distributing Ferragamo products in the Greater China area. The deal, valued at $42 million, was endorsed by the Control and Risk Committee and will make the company and its subsidiary, Ferragamo Hong Kong (FHK), the sole shareholders of these ventures.

The board meeting, chaired by Leonardo Ferragamo, saw the purchase of 25 per cent equity in Ferragamo Moda (Shanghai) Co Limited (FMS) and Ferrimag Limited (FIM), and 24.8 per cent in Ferragamo Retail Macau Limited (FRM), Salvatore Ferragamo said in a press release.

The purchase involved minority interests currently held by Imaginex Holdings Limited and Imaginex Overseas Limited, companies related to Salvatore Ferragamo board member and shareholder, Peter KC Woo, who abstained from the board’s approval process. The transaction is classified as a related party transaction under Consob Regulation 17221/2010 and the company’s Procedure for Related Parties Transactions, last updated on August 3, 2023.

An independent financial advisor, EY Advisory, confirmed the fairness of the purchase price. The legal documents have been signed, and the equity transfer will be completed by November 9, 2023.

The acquisition aligns with Salvatore Ferragamo’s Strategic Plan presented in May 2022, consolidating its presence in the Greater China area—a market with significant growth potential for the company.

The Information Document relating to the transaction will be made public as per applicable laws and regulations.

“The acquisition of the equity interests held by Imaginex Group concludes an extraordinary path of alliance and development conducted, together with Peter Woo, over the last 35 years, which has allowed the Group to be among the first Italian luxury brands to establish itself in this important market,” said Leonardo Ferragamo, chairman of Salvatore Ferragamo.

“The conclusion of the transaction will strengthen Ferragamo's presence in the Greater China area, one of the most relevant markets for the Group, at a very important time for the brand's relaunch,” said Marco Gobbetti, CEO and general manager of Salvatore Ferragamo.

Fibre2Fashion News Desk (NB)

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