• Home
  • V1
  • Fashion
  • Richemont appoints Nomura to search suitors for Lancel

Richemont appoints Nomura to search suitors for Lancel

By FashionUnited

loading...

Scroll down to read more

Fashion

Swiss luxury goods group Richemont (CFR.VX) is allegedly looking for a suitor for its leather articles brand Lancel. As main French media reported earlier this week, Richemont has appointed investment bank Nomura to advise on a possible sale of luxury

leather goods brand.

Richemont,
that acquired Lancel in 1997 for 210 million euros, would be looking at selling its French brand at circa 500 million euro, according to ‘Le Figaro’ and ‘Le Monde’.

After years of losses, the leather had become profitable in 2011 to end in the red again as the Swiss luxury conglomerate ended it fiscal year 2012 last March. Lancel reported losses for the period of 20 million euros on a turnover of 350 million euros.


Lancel could be worth 500 million euros

As main French journals published earlier this week, the sale of Lancel could be sealed at circa 500 million euros. Unnamed sources close to the matter quoted by ‘Le Figaro’ said that private-equity firms and strategic investors are interested in Lancel.

Rene Weber, an analyst at Bank Vontobel, wrote in a note to investors that “The divestment of Lancel would be seen as a positive step as it would confirm that Richemont is willing to tackle their underperforming businesses.”

Weber estimates Lancel would be worth 200 million euros. Shares at the luxury group have gained 57 percent in the past year.
Lancel
Richemont