Richemont has sold its wholly-owned subsidiary, Lancel, to premium Italian leather goods Group, Piquadro. As previously reported by ILM, both Companies were in talks in March this year, with the transaction expected to be completed in mid-2018. Richemont is to receive a share of the profits earned by Lancel Group in the ten years following the closing; “the cumulative income to Richemont under this mechanism not exceeding €35 million”, said Piquadro. According to Richemont, the transaction will have no material impact on its balance sheet, cash flow or results for the year ending March 31, 2019.
“We are very proud to bring to the Piquadro Group a historic French brand that has been a style icon of unrivalled excellence since 1876,” said Marco Palmieri, Chairman and CEO, Piquadro Group. “This acquisition is part of a strategy of bringing together accessory brands that we began about a year ago with the acquisition of the historic Florentine leather goods brand The Bridge, a strategy that we intend to pursue with a view to generating greater and greater synergies”.
For the fiscal year ending March 31, the Lancel Group achieved sales of €53 million, with a cash positive net financial position of around €41 million, “representing sufficient financial resources to fund foreseeable trading and a significantly reduced annual operating cost structure already implemented by Richemont”, according to Piquadro, and an estimated net equity of €36 million.