Fashion awakens capital’s appetite: 238 deals in 2018
Cosmetics lead M&A, followed by ecommerce, accessories and clothing. Last year’s total amount of deals reached 307 million euros (338 million dollars).
From 221 transactions in 2017, to 232 in 2018. During last year, the fashion industry made eleven corporate operations more than in 2017, a figure that proves how acquisitions in the industry fluctuate with positive results. Cosmetics became the sector with more transactions in 2018 with a total amount of 87 operations, overcoming for the first time those made in ecommerce, accessories and clothing, according to the report Tailoring the luxury experience 2019 published by EY.
Merges and aquisition activities in fashion and luxury reached a maximum in history with 142 transactions in 2018 reached 307 million euros (338 million dollars).
Regarding the average size of operations, the average in 2018 goes up to 527 million euros (580 million dollars) without taking into account the acquisition of a 26% of Christian Dior’s stake in by LVMH, 3% of Burberry and the merge of Essilor and Luxottica.
Cosmetics has become the sector with more transactions in 2018 with a total amount of 87 operations
Goat Group acquired Flight Club New York in 2018, which resulted in the company’s first physical store. In sportswear another deal took place: Tentent and Anta Sports for 5.6 billion euros (6,2 billion dollars). Other deal include Yves Rocher and Sabon Shel Paam, in cosmetics; Michael Kors and Gianni Versace, in clothing; Luxottica and Barberini, in accessories, and Richemont and Yoox Net-A-Porter, in ecommerce.
The Asian investors kept on showing interest in European fashion promoting fusions and acquisitions. During 2018, two Asian forces were the main stars: Shandong Ruyu and Fosun International. The first one acquired the Swiss premium brand, Baly. The second one took the French haute couture Lanvin with the lingerie brand Wolfourd.
Michael Kors led big transactions. After acquiring Jimmy Choo in 2017, the American group took in Versace in 2018 for 1.83 billion euros (2 billion dollars). After the operation, the conglomerate changed its name to Capri. Premium fashion companies are valued, in average, at 12.5 times ebitda, while the cosmetic group multiple stands at 16.8, according to data for the first quarter 2019.
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