Global luxury fashion firm Lanvin Group entered into a definitive business combination agreement with special purpose acquisition company Primavera Capital Acquisition Corporation (NYSE: PV). The transaction values the combined company at an equity value of US$1.9 billion and an enterprise value of US$1.5 billion.
The combined company is expected to receive US$544 million in gross proceeds through US$414 million of cash held in the SPAC’s trust account and forward purchase agreements of US$130 million.
All of Lanvin Group’s existing shareholders have committed to rolling 100% of their equity into the combined company, representing 65% of the resulting merger.
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Following the closing of the transaction, the combined firm is set to trade on the New York big board under the symbol “LANV”.
Proceeds from the transaction are earmarked for operational improvements and growth initiatives including branding and marketing, product category and retail store expansion, general working capital, as well as future acquisitions.
The fashion conglomerate operates the following brands: French couture house Lanvin, Italian luxury shoemaker Sergio Rossi, Austrian skinwear Wolford, American womenswear brand St. John Knits, and Italian menswear maker Caruso.
The black check firm, on the other hand, completed its US$300 million IPO in January 2021. According to its prospectus, it intended its search for target firms on global consumer companies with a significant China presence.
Primavera Capital Acquisition last traded at US$9.79 on the NYSE.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
