Farfetch Limited (NYSE: FTCH), a global technology platform for the luxury fashion industry, acquired New Guards Group, a Milan, Italy-based brand platform for luxury brands’ design, production and distribution, for a total enterprise value of $675m.
The deal is expected to close in the third quarter of 2019, subject to the satisfaction or waiver of closing conditions.
Co-founded in 2015 by Claudio Antonioli, Davide De Giglio and Marcelo Burlon, New Guards is a brand platform that has launched several global luxury fashion brands, with a track record of identifying and nurturing some of the most relevant emerging brands, designers and creative directors in the sector.
The company provides the resources and expertise to turn early stage brands into high growth businesses. A number of the New Guards portfolio brands were already present – via boutiques – on the Farfetch Marketplace.
New Guards owns majority stakes (c. 75% on average) in seven popular brands including Marcelo Burlon County of Milan, Off White™, Palm Angels, Ben Taverniti ™ Unravel Project, Heron Preston, Alanui, Kirin Peggy Gou.
The portfolio delivered revenue for the 12 months ending April 30 2019 of $345m.
Now, the acquisition provides the opportunity to develop and introduce new brands to the platform, along with exclusive capsule collections and collaborations.
Farfetch will help New Guards’ existing and future portfolio brands maximize their potential by opening new e-Concessions on the Farfetch Marketplace, and will power each brand’s own e-Commerce site and digital platforms through its Farfetch Platform Solutions capabilities. It will promote additional alignment with boutique sellers via a new model of “connected wholesale”.
Farfetch will leverage its existing Technology, Data and Logistics infrastructure to tap into near-real-time supply and demand data to match New Guards’ production in a quick cycle.
The acquisition will see New Guards’ design and production capabilities combine with Farfetch’s existing technology, online and offline data, direct-to-consumer distribution and network of more than 650 of the most exclusive luxury boutiques in the world.
FinSMEs
09/08/2019