Billionaire Guo Guangchang’s Fosun To List Fashion House Lanvin In New York Via $1.9 Billion SPAC Deal

Lanvin Group—controlled by Chinese billionaire Guo Guangchang’s Fosun International—has agreed to merge with blank-check company Primavera Capital Acquisition Corp. (PCAC), in a transaction valuing the combined entity at $1.9 billion.

The merger with PCAC—a special purpose acquisition company backed by China-based global investment firm Primavera Capital Group—will pave the way for the New York listing of Lanvin Group, owner of the French fashion house bought by Fosun in 2018. Under the deal, which values Lanvin Group at $1.5 billion, the combined entity will raise $544 million from the New York initial public offering.

“We plan to accelerate the growth of our portfolio via both organic development and disciplined acquisitions, building a global portfolio of iconic luxury fashion brands that appeal to a broad customer base,” Lanvin Group chairman and CEO Joann Cheng, said in a statement on Wednesday. “Lanvin Group will not only enable these brands to flourish in their home countries, but also in Asia and North America, the largest luxury markets in the world.”

The Lanvin brand traces its roots to France’s oldest fashion house, which was founded by French fashion designer Jeanne Lanvin in 1889. The group is currently headquartered in Shanghai, where its parent Fosun is also based. It owns and manages Lanvin and other iconic brands such as Italian shoemaker Sergio Rossi, Australian lingerie brand Wolford, American womenswear St John Knits and Italian menswear brand Caruso.

“We have been looking to support an emerging leader in the consumer sector with enduring global appeal and significant growth prospects in Asia,” Max Chen, chairman and CEO of Primavera, said in a statement. “In Lanvin Group, we see a unique global business with a rich heritage, an entrepreneurial management team, and a differentiated strategy to build a luxury powerhouse for a new generation of consumers, especially benefiting from surging luxury consumption in Asia.”

PCAC will inject $414 million cash into the combined entity as part of the IPO proceeds, while Fosun and other investors including Japan’s Itochu Corp. will contribute $130 million. The proceeds will be used to accelerate Lanvin’s growth and fund future acquisitions, Lanvin said.

With the global luxury foods market expected to reach $430 billion by 2025, Lanvin said it’s well-positioned to capture growth opportunities. The group’s global revenue more than doubled in 2021, driven by strong demand from Greater China, North America as well as e-commerce sales.

Lanvin’s Hong Kong-listed parent has been building international brands including Club Med. Apart from tourism, Fosun has interests in mining, pharmaceuticals and steelmaking. It was cofounded in 1992 by Guo and three classmates from Shanghai’s Fudan University: Liang Xinjun, Wang Qunbin and Fan Wei. Today, only Guo and Wang are still with Fosun, Liang resigned from the company in 2017, and Fan stepped down in 2015.