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Piquadro in talks to pick up Lancel from Richemont
Posted on Tuesday, 13 March 2018 11:58
Italian leather goods company Piquadro said it has entered into exclusive discussions to acquire luxury French peer Lancel from Richemont.
The suitor was quick to point out that no agreement has been reached as yet and it has just commenced due diligence.
Should the potential deal proceed further, completion would be expected to follow by the middle of calendar year 2018.
Further updates will be released in due course.
This would not be Piquadro’s first acquisition of the last few years; back in December 2016, it picked up an 80.0 per cent shareholding in Italian leather goods and handbags manufacturer Il Ponte Pelletteria, also known as The Bridge, for EUR 1.68 million.
It also intends to buy the balance of the Scandicci-headquartered business by 1st April 2023.
Paris-headquartered Lancel has a history dating back to 1876 and started life as a manufacturer of pipes and smoking accessories, before transitioning into the leather goods field in 1883.
There have already been 21 deals targeting leather and allied product manufacturers announced worldwide during 2018, according to Zephyr, the M&A database published by Bureau van Dijk.
Nine of these deals featured targets based in Western Europe, including the most valuable – a USD 4.44 billion spin-off of a 70.0 per cent stake in German sports shoe manufacturer Puma by Kering.
This was significantly larger than the second-placed deal, a USD 700 million purchase of a majority stake in Swiss luxury shoe maker Bally International by Shandong Ruyi International Fashion Industry Investment Holding, alongside members of the target’s management team.
The largest non-European deal placed third overall in the year to date as Black Diamond Capital Management agreed to acquire GST AutoLeather for USD 167.00 million.
Others in the sector to have been targeted this year include E-Leather, Tod’s, YBRoad and East Asia Holdings Investment.
© Zephus Ltd