Mytheresa agrees deal to acquire Yoox Net-A-Porter to create global luxury fashion giant
Mytheresa has agreed a deal with Richemont to acquire Yoox Net-A-Porter Group (YNAP) to create a global online luxury fashion giant.
Germany's Mytheresa will pay luxury conglomerate Richemont a cash sum of €555 million and 33% of its own fully diluted share capital to secure the deal, while YNAP will be offered free of debt and with a six-year €100 million revolving credit facility from Richemont.
Mytheresa, which has bucked the trend in luxury with solid financial performances of late, has said the new group has the potential to achieve GMV of €4 billion by FY29 (the current combined GMV of YNAP and Mytheresa is €3 billion). It will create a new luxury division with three distinct "door fronts", Mytheresa, Net-A-Porter and Mr Porter, while the off-price division, comprising YOOX and The Outnet will be separated entirely from the luxury division.
This structure will allow for "a simpler and more efficient operating model driving higher growth and profitability", the group has said. Mytheresa CEO Michael Kliger explained that while Net-A-Porter and Mr Porter were profitable, the off-price businesses were not, and they required a leaner, more efficient business model to return them to profitable growth.
The group is promising the three luxury sites will have distinct product assortments, different customer bases and differentiated marketing, but they will all operate on the Mytheresa technology platform. It is anticipated that while the businesses will share certain functions, they will retain separate teams in areas such as marketing. Until the deal is approved, they will all run completely separately and "as competitors".
YNAP's white label division, which powers the websites of other third-party fashion brands, will be discontinued. The decision to close the white label division was made independently of the deal with Mytheresa. YNAP and Richemont decided to close the division after the deal to sell YNAP to Farfetch collapsed. Farfetch itself was acquired in a rescue deal by South Korea's Coupang at the end of last year.
Mytheresa CEO Michael Kliger said: “I am truly excited by today’s announcement. With this transaction, Mytheresa aims to create a pre-eminent, multi-brand, digital, luxury group worldwide. MYTHERESA, NET-A-PORTER and MR PORTER will offer differentiated but complementary multi-brand luxury edits based on curation, inspiration and outmost customer service. The three brands will share a large part of their infrastructure creating synergies and efficiencies while maintaining their different brand identities.
"The off-price business will benefit from the separation from luxury and a much simpler operating model driving growth and profitability. We believe that this transaction will create significant value for our shareholders, brand partners and most importantly for our high-end customers.”
Richemont chairman Johann Rupert added: “We are pleased to have found such a good home for YNAP. As a trusted partner to many of the world’s leading global luxury brands, YNAP is renowned for its pioneering high-end customer services complemented by its distinctive and inspirational editorial voice. Mytheresa is ideally placed to build on YNAP’s assets to further delight customers and brand partners alike across the world by harnessing both companies’ respective strengths.”
The deal is subject to regulatory approval and is expected to complete in the first half of 2025.