Italian luxury fashion brand, Salvatore Ferragamo, has recently announced its acquisition of minority interests in joint ventures in the Greater China region. This move is part of the company’s strategic plan to strengthen its presence in this important and lucrative market.
Salvatore Ferragamo, in conjunction with its subsidiary, Ferragamo Hong Kong, has now taken full control of three joint ventures, namely Ferragamo Moda (Shanghai) Co. Limited (FMS), Ferragamo Retail Macau Limited (FRM), and Ferrimag Limited (FIM). These joint ventures were initially established with entrepreneur Peter K.C. Woo to distribute Ferragamo products in Greater China.
By acquiring the minority stakes previously held by Woo’s Imaginex Holdings Limited and Imaginex Overseas Limited, Salvatore Ferragamo S.p.A. and FHK have become the sole owners of these companies. The acquisition was valued at a total of $42 million.
The equity interests involved in this acquisition amount to 25% of FMS and FIM, and 24.8% of FRM. The completion of the deal is expected to take place by November 9, 2023.
Leonardo Ferragamo, chairman of Salvatore Ferragamo S.p.A., expressed his satisfaction with the acquisition, stating that it marks the end of an extraordinary partnership and development journey that was conducted with Peter Woo over the last 35 years. This partnership allowed the Group to establish itself as one of the first Italian luxury brands in the important and thriving Chinese market. Ferragamo also acknowledged the significance of the alliance with Woo, who will continue to be a shareholder and director in the company despite the acquisition.
Marco Gobbetti, CEO and general manager of Salvatore Ferragamo S.p.A., stressed the importance of this acquisition in strengthening Ferragamo’s presence in the Greater China region, which is considered to be one of the most crucial markets for the brand. Gobbetti mentioned that the conclusion of this transaction will significantly enhance Ferragamo’s presence in the area, especially during this crucial period for the brand’s relaunch.
This strategic move by Salvatore Ferragamo demonstrates the brand’s strong commitment to capitalizing on the growth opportunities presented in the Greater China region. By taking full control of these joint ventures and consolidating its equity interests, the company aims to solidify its position in this important market and propel its brand relaunch forward. With the alliance intact with Peter Woo, Salvatore Ferragamo is well-equipped to continue its successful journey in Greater China.
Useful links on the topic:
– Salvatore Ferragamo buys out Peter Woo’s interests in China joint ventures
– Salvatore Ferragamo strengthens presence in China with joint venture buyout
