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Richemont signs deal to merge Yoox Net-a-Porter with Farfetch

Jeremy Lim
24 August 2022

Swiss luxury group Richemont has sold a majority stake of Yoox Net-a-Porter to Farfetch and an Emirati investor.

The transaction will see Farfetch pay Richemont between 53 to 58.5 million Farfetch shares, as well as an additional $250 million worth of shares five years after the deal is completed, acquiring 47.5% of Yoox Net-a-Porter.

Alabbar, a group backed by Emirati businessman Mohamed Alaabar, will also acquire 3.2% of YNAP in exchange for its shares in the joint venture with the business in the Gulf Cooperation Council region.

The agreement will require Richemont to take a non-cash write down of around €2.7 billion on the value of Yoox Net-a-Porter.

The deal between Richemont, Farfetch and Symphony Global (an investment vehicle of Alabbar) has put and call options that would allow Farfetch to acquire the remainder of YNAP in the next five years or for Richemont to sell to another investor or list the shares.

Under the new partnership, Richemont and YNAP will leverage Farfetch's technology platform to advance their Luxury New Retail programme and the delivery of the omnichannel strategy of its Maisons.

Johann Rupert, Chairman of Richemont, said: "Today’s announcement is a significant step towards the realisation of a dream I first voiced in 2015 of building an independent, neutral online platform for the luxury industry that would be highly attractive to both luxury brands and their discerning clientele.

"Farfetch's sophisticated technology will enable Richemont Maisons to benefit from the best route to market and realise their Luxury New Retail vision, while implementing a hybrid model at YNAP will greatly enhance its prospects. We have adjusted YNAP’s valuation to bring it in line with today’s market environment and will receive, in exchange, shares in Farfetch, further aligning our interests. As a supportive shareholder and a Luxury New Retail partner, we will look to build the perfect platform for the future, enabling the luxury industry to flourish in an increasingly digital economy."

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