Richemont completes sale of Lancel to Piquadro

Compagnie Financière Richemont SA has said in a media statement that it has completed the sale of its wholly-owned subsidiary, Lancel, a French luxury leather goods company, on June 2, 2018 to Piquadro S.p.A., an Italian leather goods group listed on the Milan Stock Exchange.

The company added that this transaction will have no material impact on Richemont’s balance sheet, cash flow or results for the year ending March 31, 2019. As the price for the acquisition, a statement from Piquardo said, Richemont shall 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 euros (41 million dollars).

Piquardo announces acquisition of Lancel

Announcing the completion of Lancel acquisition, Piquadro said the Maison Lancel, based in Paris and founded in 1876, creates and distributes quality luxury leather goods, gifts and accessories for men and women. The company runs a selective retail network of 60 directly operated stores and 11 franchised stores. Through its retail and wholesale network, Lancel is also present in 39 countries markets including China.

“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 of the Piquadro Group in a statement, adding, “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 synergies."

For the fiscal year ended March 31 2018, the Lancel Group achieved sales of 53 million euros (62 million dollars) and returned a negative EBITDA of 23 million euros (26.9 million dollars). The company added that at closing, the Lancel Group has a cash positive net financial position of 41 million euros (48 million dollars) and an estimated net equity of 36 million euros (42 million dollars).

Picture:Lancel website