Home / Knowledge / News / Fashion / High-fashion etailer Net-a-porter to merge with Yoox Group
High-fashion etailer Net-a-porter to merge with Yoox Group
31
Mar '15
Richemont, of which high-fashion online retailer Net-a-porter is a subsidiary, has entered into a binding, conditional agreement to merge the operations of the Net-a-porter Group with Yoox Group in an all-share transaction.
 
Listed on the Italian stock exchange, Yoox Group is the global Internet retailing partner for leading fashion and design brands. It has established itself amongst the market leaders with the multi-brand online stores yoox.com, thecorner.com and shoescribe.com, as well as with numerous mono-brand online stores.
 
The merger agreement is conditional upon the approval of Yoox shareholders at a meeting which it is expected to be held in June 2015, Richemont said in a press release.
 
Upon completion of the transaction, the combined entity will be renamed ‘Yoox Net-a-porter Group’, and will continue to be incorporated in Italy. Net-a-porter Group founder and executive chairman Natalie Massenet will serve as executive chairman while Yoox founder and CEO Federico Marchetti will be the CEO of the combined entity.
 
According to the agreement, Richemont will receive, in aggregate, on a fully diluted basis 50 per cent of the share capital of the combined entity’s listed parent company. However, in order to preserve the independence of Yoox Net-a-porter Group, Richemont’s voting rights will be limited to 25 per cent.
 
Once the transaction is complete, expected in September 2015, after shareholder and regulatory approval, Richemont will appoint two representatives to the combined company’s board of directors, which will have a minimum of twelve members.
 
The Group is expected to launch a capital increase of up to €200 million to fund future growth opportunities and allow for the entry of strategic investors. Richemont is likely to participate in this capital increase.
 
“Richemont has been a pioneer in luxury e-commerce, first as a minority shareholder of Net-a-porter in its infancy and then as a controlling shareholder since 2010. We are proud of Net-a-porter’s achievements under the leadership of Natalie Massenet, ably assisted by a wonderful team of professionals,” said Johann Rupert, chairman of Richemont. 
 
“Established business models are being increasingly disrupted by the technological giants. It is with this in mind that we believe it is important to increase leadership and size to protect the uniqueness of the luxury industry. The merger of the two leaders will further enhance an independent, neutral platform for a sophisticated clientele looking for luxury brands,” Rupert added.
 
The transaction will generate a one-off, non-cash, accounting gain in Richemont’s financial statements for the year ending 31March 2016 of approximately € 317 million (at both the pre- and post- tax levels), based on currently available information, the press release said. (RKS)

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 18th Jun 2021

UK, US strike deal on Airbus-Boeing tariff dispute

The United Kingdom has struck a deal with the United States on the...

Pic: Shutterstock

Textiles | On 18th Jun 2021

Bangladesh can save $500 mn annually by recycling cotton waste: CFP

Bangladesh's garment industry can reduce its annual spending by $0.5...

Pic: Shutterstock

Textiles | On 18th Jun 2021

Prime Content| Caprolactam price in Chinese market to rise moderately in 2021: TexPro

Price of caprolactam in Chinese market is expected to rise moderately ...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Tech in fashion industry has hit acceleration button

India-EU Summit, Representatives

India-EU Summit
Representatives

India-EU FTA will provide EU with better access to a huge & rapidly...

Textile Industry, Head honchos

Textile Industry
Head honchos

Occam's razor principle and purpose-driven innovations

Mumin Can Eker,

Mumin Can Eker

Maseksport Inc is a readymade garment exporter. Founded in Izmir in 1989,...

Shivendra Nigam,

Shivendra Nigam

Delhi-headquartered Cantabil Retail India Ltd was founded by Vijay Bansal...

Dhruv Toshniwal & Udit Toshniwal,

Dhruv Toshniwal & Udit Toshniwal

Launched a year ago, Fashions Pvt Limited conceptualises and sees D2C...

Dr Anup Rakshit, ITTA

Dr Anup Rakshit
ITTA

The Indian Technical Textile Association (ITTA) is the only association of ...

Daniel Roxbury, University of Rhode Island

Daniel Roxbury
University of Rhode Island

Assistant professor Daniel Roxbury and former URI graduate student...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah & Sandeep is a luxury menswear label...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali
Kalaneca

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search