Piquadro S.p.A, announces execution of the agreement and the completion of the acquisition of the entire share capital of Lancel International S.A.

Piquadro S.p.A, which designs, manufactures and distributes professional and travel leather goods announced the execution of the agreement and the completion of the acquisition of the entire share capital of Lancel International S.A. – a company incorporated under Swiss laws, fully owned by Richemont, the Swiss luxury goods group and owner of the “Lancel” brand – and which holds 99.9958% of the share capital of the French company Lancel Sogedi S.A. and the Spanish and Italian companies that manage Lancel boutiques in those countries (Lancel International and its subsidiaries “Lancel Group”), which at the same time were transferred to Piquadro S.p.A.

The Maison Lancel, based in Paris and founded in 1876, creates and distributes quality luxury leather goods, elegant gifts and accessories for men and women. The Maison has developed a selective retail network of 60 directly operated stores and 11 franchised stores. Through its retail and wholesale network, Lancel is 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,” declares Marco Palmieri, Chairman and CEO of the Piquadro Group.

“The Parisian taste for line and detail, the superlative quality, the fascinating aura of a history that began in 1876: these are the extraordinary heritage of the Maison Lancel, and offer great potential for growth. 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 ended March 31 2018, the Lancel Group achieved sales of c. 53 million Euro and returned a negative EBITDA of c. 23 million Euro.
At closing, the Lancel Group has a cash positive net financial position of c. 41 million Euro representing sufficient financial resources to fund foreseeable trading and a significantly reduced annual operating cost structure already implemented by Richemont and an estimated net equity of c. 36 million Euro.
As the price for the acquisition, 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 Euro 35 million.