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Yoox Group to Merge with Rival Net – a – Porter to Create Ultimate Online Luxury Fashion Retailer

April 30, 2015 by Sabin Piso

The Yoox Group said on Tuesday that it agreed to merge with its luxury e-commerce rival company Net-a-Porter in an all-share deal. This would create an online luxury fashion retailer with a combined to post revenue of 1.3 billion euros, or about $1.4 billion. The new company would be called Yoox Net-a-Porter Group.

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“This is a game-changing merger between two pioneering companies that have already radically transformed the marketplace since 2000 and will now shift the industry paradigm once again,” Federico Marchetti, the founder and chief executive of Yoox, said in a news release. “Together, we plan to expand on our many combined successes and industry breadth to strengthen partnerships with the world’s leading luxury brands and harness a significant untapped growth potential.”

Net-a-Porter’s website sells clothing, jewelry, shoes and accessories from top designers and labels which includes Alexander McQueen, Dolce & Gabbana and Valentino. It also publishes Porter magazine that allows readers to buy featured items. On the other hand Yoox sells off-season luxury goods in its online store and from thecorner.com.

In an interview by telephone from Milan, Mr. Marchetti said that he admired Net-a-Porter’s editorial skills. These would improve Yoox’s business building and operating websites for luxury brands. Yoox already powers sites for more than 30 brands, including Armani, Zegna, Lanvin and Valentino, and has a joint venture with Kering for many of its luxury brands including Bottega Veneta, YSL and Alexander McQueen. Mr. Marchetti would serve as the chief executive of the combined company, and Natalie Massenet, the founder of Net-a-Porter, would be its executive chairwoman.

“Today, we open the doors to the world’s biggest luxury fashion store,” Ms. Massenet said. “It is a store that never closes, a store without geographical borders, a store that connects with, inspires, serves and offers millions of style-conscious global consumers’ access to the finest designer labels in fashion.”

According to the deal, Richemont would receive 50 percent of the combined company’s shares and hold 25 percent of its voting rights. Richmond would also be limited to two of the company’s 12 independent directors. To remember, Richemont acquired a majority interest in Net-a-Porter in 2010 in a deal that improved the company’s value at 350 million pounds, or about $519 million. Analysts said the merger will call for further consolidation in the luxury retail sector.

The transaction is subject to regulatory and shareholder approval and is set to close in September. Yoox would still be listed in Milan and based in Italy. If the transaction is completed, the combined company will raise up to €200 million in capital to fund future growth opportunities.

About Yoox

YOOX Group S.p.A is an Italian internet mail order retailer of men’s and women’s multibrand clothing and accessories. Founded by Federico Marchetti, a former investment banker, in Zola Predosa, Yoox Group has become an e-commerce company that serves more than 100 countries worldwide. Yoox stock market evolution: http://www.reuters.com/finance/stocks/overview?symbol=YOOX.MI

About Federico Marchetti

Federico Marchetti is the founder and CEO of YOOX Group. After finishing an MBA at Columbia and a brief career in finance and consulting, he developed Internet retailing company Yoox in 2000 in Zola Predosa. Marchetti took YOOX Group public in 2009 on the Borsa Italiana (Milan Stock Exchange). It was the first European tech company to do so since the economic downturn of that period. YOOX Group opened its first offices in China in 2010 in the city of Shanghai. In 2011, Marchetti was given an award for Innovation and Internet by the Italy-based Chi è Chi (Who’s Who) organization. On January 25, 2012, Marchetti and YOOX Group were awarded the Comitato Leonardo’s Premio Leonardo award for innovation by Giorgio Napolitano, President of Italy.

About Net –a – Porter

Net-a-Porter

Net-a-Porter is a high-fashion retailer that online designed in the style of a magazine. It was launched in London in June, 2000 by Natalie Massenet. It now operates globally with multiple fashion retailing sites and some 2,600 employees. It is part of the Swiss holding company Richemont. The website has 2.5 million unique visits in Internet traffic to their website every month.

About Natalie Massenet

Natalie Massenet MBE is a fashion entrepreneur, former journalist and founder of fashion portal Net-a-Porter. Since 2013, she has been chairman of the British Fashion Council. Credited by many as changing the way designer fashion is retailed, she has been described as: “fashion’s favorite self-made success story” by The Observer. Massenet received an MBE for services to the fashion industry in 2009. In 2013, Massenet was made a Woman of the Year by US Glamour magazine. In 2014, she was named as one of the 100 most influential people by Time.

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Filed Under: Noutati Sabin Piso Tagged With: Federico Marchetti, merger, Natalie Massenet, Net – a- Porter, YOOX

Amazon.com in Talks to Acquire Net- a – Porter

March 30, 2015 by Sabin Piso

E-commerce giant Amazon.com Inc. is in talks to buy London-based online luxury retailer Net-a-Porter. However, this deal is far from complete; experts say that negotiations are still in the early stages. A person familiar with the matter has informed Forbes last Thursday. This potential acquisition deal could be Amazon’s biggest if finalized. This deal was first reported by Women’s Wear Daily. The report also noted that a successful completion of this deal will value Net-a-Porter lower than its current valuation of 2 billion euros.

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It has been known that Amazon has been checking out the high-end fashion retail sector for quite some time now. Acquiring Net-a-Porter, which is owned by Swiss firm Compagnie Financière Richemont, would mean that there will be a new segment where it is lacking. This was according to Forbes report. Amazon’s CEO Jeff Bezos had told the New York Times in 2012 that the company is planning on making a “significant” investment in world’s top luxury brands.

In August 2014, Amazon bought video-game streaming company Twitch for about $1.1 billion in cash.  Amazon.com also acquired online shoe retailer Zappos for $1.2 billion in 2009. It was also reported that Amazon is in talks to purchase Indian fashion retailer Jabong.com for $1.2 billion. This was a report confirmed by Reuters.

“It’s Day 1 in the category,” Amazon chief executive Jeff Bezos told the New York Times in an interview in 2012. Bezos mentioned this revealing that the company was making a “significant” investment in fashion. This was to convince top brands that the online shopping giant wanted to work with them and not against them.

Media reports also said that in 2014 Amazon was in talks to buy Indian fashion retailer Jabong.com for $1.2 billion. Net-a-Porter on the other hand is owned by luxury goods company Richemont. This giant has bought the London-based company for 392 million euros back in 2010.

Amazon.com, Net-a-Porter and Richemont could not be reached for comment outside regular business hours. Reports of the possible acquisition will be provided on the following weeks should a talk happen between the two companies.

By AL Mijares

About Amazon.com

Amazon.com, Inc. is an American electronic commerce company with headquarters in Seattle, Washington. Amazon is the largest Internet-based retailer in the United States. Amazon.com started as an online bookstore, but soon diversified and is now selling DVDs, VHSs, CDs, video and MP3 downloads/streaming, software, video games, electronics, apparel, furniture, food, toys, and jewelry. Amazon also produces consumer electronics such as Amazon Kindle e-book readers, Fire tablets, Fire TV and Fire Phone. It is also currently a major provider of cloud computing services. Amazon also sells low-end products like USB cables under its in-house brand AmazonBasics.

Amazon.com has separate retail websites for United States, United Kingdom & Ireland, France, Canada, Germany, The Netherlands, Italy, Spain, Australia, Brazil, Japan, China, India and Mexico. Amazon India on the other hand will soon start offering music, movie and video streaming services in India. Amazon also offers international shipping to certain other countries for some of its products.  In 2011, it mentioned that it wanted to create websites in Poland and in Sweden. Amazon.com stock market evolution: http://quotes.wsj.com/AMZN

About Jeff Bezos

Jeffrey Preston “Jeff” Bezos is an American business magnate and investor. He is a technology entrepreneur with a key role in the growth of e-commerce. He is the founder and CEO of Amazon.com, an online merchant of books and later of a wide variety of products. Through Bezos, Amazon.com became the largest retailer on the World Wide Web and a top model for Internet sales. In 2013, Bezos purchased The Washington Post newspaper. As of March 2015, Bezos’s personal wealth is estimated to be US$34.8 billion. This ranks him number 15 on the Forbes list of billionaires.

About Net –a – Porter

netaporter

Net-a-Porter is a high-fashion retailer that operates via a magazine website. It was launched in London in June, 2000 by Natalie Massenet. Net – a – Porter has multiple fashion retailing sites and some 2,600 employees, it is part of the Swiss holding company Richemont. It has approximately 2.5 million unique visits in internet traffic to their website every month.

About Richemont

Compagnie Financière Richemont SA  is the owner of Dunhill, Baume & Mercier SA, Cartier, IWC International Watch Co. AG, Jaeger-LeCoultre, Montblanc, Piaget SA, Manufacture Roger Dubuis SA, Vacheron Constantin SA, and Van Cleef & Arpels, is a Switzerland-based luxury goods holding company founded in 1988 by South African businessman Johann Rupert. Through its various subsidiaries, Richemont designs, manufactures, distributes and sells premium jewelry, watches, and leather goods, writing instruments, firearms, clothing and accessories. Richemont is publicly traded as CFR on the SIX Swiss Exchange and the JSE Securities Exchange. Richemont stock market evolution: http://www.bloomberg.com/quote/CFR:VX

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Filed Under: Noutati Sabin Piso Tagged With: acquisitions, Amazon.com, Jeff Bezos, Net – a- Porter, Richemont