Fosun fashion deal hangs on ‘Made in China’ label

Stella International Holdings

23/03/2022 02:38

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
    By Jeffrey Goldfarb
    MELBOURNE, March 23 (Reuters Breakingviews) - The
conglomerate is showcasing its Lanvin-led collection of upscale
brands in a Primavera-backed New York SPAC. The $1.9 bln
valuation, impressive growth and international flair should make
this mini LVMH wannabe prêt-à-porter. Chinese red is a tricky
shade for investors, though.
    Full view will be published shortly.
    Follow @jgfarb https://twitter.com/jgfarb on Twitter
    
    CONTEXT NEWS
    - Lanvin Group, which owns luxury fashion brands including
Sergio Rossi and St. John, said on March 23 it had agreed to go
public by merging with special-purpose acquisition company
Primavera Capital Acquisition Corporation in a transaction that
values the equity at about $1.9 billion.
    - As part of the deal, founding investor Fosun International
and other owners will roll all their existing shares into a 65%
stake in the new publicly traded company. 
    - Lanvin Group will receive up to $544 million, including up
to $414 million of cash held in PCAC’s trust account. The
proceeds also include a $50 million fully committed PIPE, or
private investment in public equity, and an $80 million forward
purchase agreement from Fosun, Itochu, Stella International,
Baozun Hong Kong Investment, Golden A&A, Aspex Master Fund and
Sky Venture Partners.
    - Cantor Fitzgerald is advising Lanvin Group while Citigroup
and Credit Suisse are advising PCAC.

 (Editing by Robyn Mak and Katrina Hamlin)
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