A growing number of M&A deals and funding rounds are bringing together some of the biggest names in the fashion and luxury space. In November, a $1.15 billion deal came to light, bringing together Cartier’s parent company Richemont, Chinese e-commerce titan Alibaba, and fashion retail platform Farfetch. The headline-making transaction followed from reports that a “mega deal” was in the making. In addition to proving noteworthy because it brought together three very big names in the fashion sphere in furtherance of an effort that largely focuses on “providing luxury brands with enhanced access to the China market,” the alliance is striking, as it has given rise to speculation about a potential consolidation, with at least some analysts wondering aloud whether the $1.15 billion tie-up could be “a preamble” a larger M&A effort, namely, Richemont merging Yoox Net-a-Porter with Farfetch or the Swiss conglomerate selling the fashion e-commerce pioneer to Alibaba.
Around the same time, LVMH Moët Hennessy Louis Vuitton decided to make good on an acquisition effort of its own, the one it had also been quietly (and then not so quietly) working towards: Tiffany & Co. Just a matter of days before the Farfetch-Alibaba-YNAP deal was confirmed, LVMH and Tiffany revealed that they had managed to put their rival lawsuits to bed and come to agreeable terms under which the famed New York-based jewelry stalwart could be brought under the ownership umbrella of the Paris-based luxury goods titan. In exchange for $15.8 billion, LVMH would acquire all shares in the formerly publicly-traded Tiffany & Co.
Both instances come as consolidation has been top of mind in the luxury space, where the biggest groups, such as Louis Vuitton-owner LVMH and Gucci’s parent company Kering, have amassed sizable rosters of brands over the past several decades by way of various fashion and luxury-centric M&A transactions, thereby, enabling them to benefit from sheer size and scale, while making it more difficult for independently-owned brands to compete. The havoc wreaked on brands’ balance sheets by the COVID-19 pandemic and the resulting shift online (and the expenses that come with doing that and doing it well) is expected to accelerate that existing fashion industry M&A activity even further.
“With the financial difficulties [brought about by COVID] in mind, many players, and in particular the smallest, will become more-affordable M&A targets,” according to Isabelle Chaboud, an Associate Professor in the Finance, Accounting and Law Department of Grenoble Ecole de Management. “The most financially solid players – such as LVMH, Kering or Chanel – will no doubt have the option of buying out competitors, subcontractors and even suppliers.” (For a timeline of supplier-specific M&A, you can find that here.)
A Timeline of Transactions
With the foregoing in mind, here is a running timeline of the most recent fashion and luxury-focused M&A and investments dating back to LVMH’s headline-making deal with Tiffany & Co. …
Dec. 3, 2024 – Alibaba Invests $71.4M in Ably Corp.
Alibaba Group has invested 100 billion won ($71.4 million) in Ably Corporation in exchange for a 5 percent in the Seoul, South Korea-headquartered women’s fashion e-commerce company. The deal values Ably Corp. at $2.1 billion, making the company South Korea’s first unicorn startup of 2024. Ably’s valuation has “tripled in three years, compared to 900 billion won during its pre-Series C funding round in January 2022, where it raised 67 billion won,” per Business Korea.
Nov. 26, 2024 – True Diamond Raises $1M Seed Round
True Diamond has raised $1 million in a Seed funding round led by Titan Capital with participation from Huddle Ventures, Zeropearl Ventures, and several notable angel investors including founders from RENA E Cosmetics, Mamaearth, Tracxn, and Astrotalk. The New Delhi-based startup, which specializes in the creation of lab-grown diamonds, will use the new funds to “expand our team, establish boutique locations, and execute strategic marketing initiatives,” Parin Shah, co-founder of True Diamond, said.
Nov. 15, 2024 – Tomorrow Ltd. Sells off A-Cold-Wall to Four Marketing
Tomorrow Ltd. has sold London-based fashion brand A-Cold-Wall to Four Marketing, a distribution agency backed by Mike Ashley’s Frasers Group. The deal comes less than one year after Tomorrow, a British company that advises and invests in fashion companies and distributes apparel and accessories, acquired the 9-year-old company from its founder Samuel Ross. The terms of the transaction have not been disclosed.
Nov. 8, 2024 – Vuori Raises $825M in New Round
Vuori has raised $825 million in an investment round led by General Atlantic and Stripes, along with a cohort of additional investors. The investment, structured as a secondary tender offer, raises the brand’s valuation to $5.5 billion and marks “yet another historical moment in the private apparel company’s journey to becoming a category leader,” the California-based athleisure company said. Building on the brand’s 2021 $400 million investment led by institutional investor SoftBank Vision Fund 2 at a previous valuation of $4 billion, “this financing reflects Vuori’s momentum in disrupting the athleisure industry and the shared belief from its partners and investors that the growth opportunity ahead is substantial.”
Nov. 7, 2024 – LVMH Luxury Ventures Fund Takes Stake in Our Legacy
LVMH Luxury Ventures has acquired a minority stake in Our Legacy. The terms of the deal between the venture capital arm of LVMH and the Swedish fashion brand have not been disclosed; however, LVMH Luxury Ventures typically targets investments ranging from €2 million to €15 million, but can extend beyond the €15 million mark. Julie Bercovy, the chief executive of LVMH Luxury Ventures Advisors, said that the deal is “in line with the fund’s previous investments,” which have been much as $25 million for as much as 25 percent of a company.
Our Legacy’s “brand image is very cult,” Bercovy said, noting that while the company – which was founded in 2005 by Jockum Hallin, Cristopher Nying, and Richardos Klarén – is “under the radar,” it is “on our radar.”
Oct. 22, 2024 – With Noting Underneath Raises £2.5M
With Nothing Underneath has raised £2.5 million in a new funding round led by Pembroke VCT and JamJar Investments. The womenswear brand will use the new funds to expand in the United Kingdom, as well as mainland Europe and the U.S. to drive its growth. Additionally, the company, which was founded by former Tatler editor and Vogue stylist Pip Durell, will use the cash to “strengthen its senior leadership team, as well as further develop new product lines.”
Oct. 18, 2024 – Cult Mia Raises $2M in New Round
Cult Mia has raised $2 million from H&M Group Ventures, Fuel Ventures and David Wertheimer. The London-based fashion marketplace, which specializes in evening-wear and occasion-wear, will use the new funds to test new product categories, including “everyday wear, childrenswear, maternity and homeware,” and fuel its expansion into the markets. Cult Mia founder Nina Briance said that the Middle East is a key market of interest, as consumers there “spend twice as much as any other region, and they return basically nothing. The breadth of brands and products that are purchased is very widespread. The Middle Eastern shopper does want to stand out, and wants to be the person introducing their friend group to new brands.”
Oct. 15, 2024 – P180 Takes A Minority Stake in Altuzarra
P180 has taken a minority stake in Altuzarra, the brand designed by creative director Joseph Altuzarra. P180, the retail innovator and investment vehicle co-founded by industry veteran Brendan Hoffman and CaaStle CEO Christine Hunsicker. “When Christine and I launched P180 just over a year ago, and we made our list of brands that we thought would fit the center of the bullseye for what we want to do and what we offer, and Altuzarra was at the top of the list,” Hoffman said. In addition to its financial investment, Forbes reports that P180 will “support Altuzarra’s digital transformation by onboarding Altuzarra.com onto CaaStle’s proprietary platform. This will enhance Altuzarra’s ecommerce capabilities, turning the digital channel into a profit center.”
Oct. 15, 2024 – Frasers Group Takes “Significant” Stake in Hudson Malta
Frasers Group has acquired a “significant” non-controlling stake in Africa-focused sport and fashion retailer and distributor Hudson Malta. While the financial terms of the deal were not disclosed, the agreement enables Frasers to acquire a controlling interest in Hudson in the future. As of now, Reuters reports that the deal “will help Hudson enter the Maltese market with the first Sports Direct store planned to open in 2025, and further expansion in the Northwestern Africa market.”
Oct. 11, 2024 – Frasers Invests £10 million in Online Retailer THG
Frasers Group has invested £10 million in online retailer THG as part of a £100 million fundraising round. The fundraising will enable the online retailer to spin off its unprofitable tech unit, Ingenuity, with THG stating that the company will become a “simpler, cash-generative business capable of paying future dividends” after the split off of its Ingenuity division. Frasers’ “strategic investment” in the Matthew Moulding-led e-commerce company follows just three months after it acquired THG’s portfolio of apparel companies, including the Coggles brand.
Oct. 8, 2024 – Saudi Public Investment Fund to Acquire 40% Stake in Selfridges
Saudi Public Investment Fund (“PIF”), Saudi Arabia’s sovereign wealth fund, will acquire a 40 percent stake in Selfridges. It will acquire the holding from Signa Group, the Austrian property group that bought Selfridges with the Thai conglomerate Central Group for £4 billion in 2021, for an undisclosed sum. PIF will now own Selfridges Group in partnership with Central Group, with the aim of “accelerat[ing] growth” for the ailing British retail chain, according to the Guardian. PIF said the investment aligns with its strategy of “investing in key strategic sectors globally and is underpinned by a shared vision to unlock further value in Selfridges.”
Oct. 7, 2024 – Richemont to Sell YNAP to Mytheresa
Richemont has signed an agreement for MYT Netherlands parent B.V. Mytheresa to acquire 100% of the share capital of Yoox Net-a-Porter to create what it calls “a global, multi-brand digital luxury group” in exchange for a 33 percent equity stake in Mytheresa. The deal was first reported by TFL.
The parties confirmed in a release that Richemont will sell YNAP to Mytheresa with a cash position of €555m and no financial debt, subject to customary closing adjustments, in exchange for shares to be issued by Mytheresa representing 33 percent of Mytheresa’s fully diluted share capital at closing following issuance of the consideration shares. Richemont will make available a 6-year revolving credit facility of €100 million to finance YNAP’s general corporate needs, including working capital.
As a result of this transaction, Richemont currently expects the write-down of YNAP net assets to amount to approximately €1.3 billion, which also accounts for the cash to be left in YNAP upon completion.
Michael Kliger, CEO of Mytheresa, 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.”
This is a short excerpt from a data set that is published exclusively for TFL Pro+ subscribers. For access to our up-to-date fashion investment and M&A tracker, inquire today about how to sign up for a Professional subscription.
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