Richemont cashes in on Net-a-Porter’s merger with rivalComments Off on Richemont cashes in on Net-a-Porter’s merger with rival
Following the completion of merging the designer clothing online retailers, the new company, Yoox Net-A-Porter Group, is planning to raise up to €200 million in growth capital.
The deal will see Cartier parent Richemont pocket a one-off €317 million gain in the year to March 31 2016.
It will hold a 50% stake, though its voting rights will be limited to 25%.
It expects to attract more than two million high-spending customers and around 24 million visitors to its sites a month, where buyers can snap up brands ranging from Armani to Vivienne Westwood, pictured.
Natalie Massenet, who founded Net-A-Porter in 2000, will be executive chairman and Federico Marchetti, founder of Yoox, will be chief executive.
Former fashion journalist Massenet sold 93% of Net-a-Porter to Richemont in 2010.
She owned most of the remaining 7% stake. As part of a five-year incentive plan, she could receive a £70 million payout when the plan ends this year.
Marchetti said: “This is a game-changing merger between two pioneering companies.”