- Vivian Hendriksz |
London - Luxury conglomerate Compagnie Financiere Richemont SA is currently in exclusive talks to sell struggling French label Lancel to high-end leather goods company Piquadro SpA.
The Italian company confirmed that it had entered into exclusive negotiations with Richemont to acquire Lancel on Tuesday, issuing a statement to the Milan stock exchange which stated it had started due diligence on Lancel. Piquadro expects its acquisition of Lancel to be completed during the first half of 2018, subject to the final agreement of the deal. Piquadro’s acquisition of Lancel would mark the first major takeover since it acquired Tuscan leather goods producer The Bridge in 2016.
The deal comes as Richemont continues to streamline its luxury portfolio, following the sale of Hong Kong premium department store Shanghai Tang to Italian entrepreneur Alessandro Bastagli last July. The Swiss luxury firm previously announced plans to purchase 100 percent of the shares in Yoox Net-a-Porter as it turns its focus to the ‘hard luxury’ side of its business.
Lancel is part of Richemont’s “Others” division, which includes Alfred Dunhill, Montblanc and Chloe handbags. The division is said to account for 17 percent of the group’s total sales, with Dunhill and Lancel only recently returning to sales growth. Richemont previously tried to sell Lancel in 2013, but failed to attract a prospective buyer and chose to restructure the business instead. The luxury company first acquired Lancel back in 1997 for 270 million euros (375 million dollars), investing in the brand's expansion.