China’s Fosun acquires French luxury brand Lanvin
Chinese conglomerate Fosun International has purchased a controlling stake in Jeanne Lanvin, one of the oldest luxury fashion labels in France, for EUR120 million ($148 million).
The deal was disclosed the same day as the Chinese government announced it had seized control of Anbang Insurance Group and prosecuted the company's chairman for economic crimes. Last year, Fosun and Anbang - as well as HNA Group and Wanda Group - were investigated by regulators over their high-profile offshore transactions.
Founded in 1889, Lanvin operates in more than 50 countries with products ranging from apparel and leather goods to footwear, accessories, and fragrances. In 2001, Taiwan-based businesswoman Shaw-Lan Wang bought a majority stake in the company and expanded the business further into Asia. Following the latest transaction, Wang has become a minority shareholder in Lanvin.
“As China becomes the main growth driver of the global luxury market, we are confident that Fosun can bring great incremental value to Lanvin with our global resources and expertise, while being absolutely committed to Lanvin’s high luxury positioning,” said Joann Cheng, vice CFO of Fosun International, in a statement.
The asset will be managed by the Fosun Fashion Group, a newly-created investment platform that is responsible for Fosun’s portfolio of global fashion and retail brands. They include US-based female knitwear brand St. John Knits, Italian luxury menswear brand Caruso, Greek-based jewelry and fashion accessories maker Folli Follie, and German lifestyle clothing company Tom Tailor.
With a team of operating and investment professionals, Fosun Fashion Group helps portfolio companies in areas such as brand building, product development, forging strategic alliances, and sales and marketing.
Fosun International is the Hong Kong-listed unit of Fosun Group, controlled Chinese billionaire Guo Guangchang. As of June 2017, Fosun Group’s total assets exceeded RMB500 billion ($75 billion), with business interests covering industrials, insurance, real estate, healthcare, investment, and asset management.
Chinese regulators have increased scrutiny of outbound M&A with a view to stopping irrational transactions that had little relevance to investors' major business areas. However, this has yet to dampen Fosun’s desire to invest overseas.
In July of last year, Fosun and Beijing Sanyuan Foods agreed to buy French margarine maker St Hubert from Montagu Private Equity for EUR625 million. In addition, Fosun was said to be in talks with Italy’s La Perla over the purchase of a majority stake in the luxury lingerie group.
DLA Piper is Fosun’s legal adviser on the Lanvin deal.
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