Yoox buys Net-a-Porter!

[ES3K]

I first thought this is an april fool's joke, but the news is dated march 31st.

Italian online fashion retailer Yoox has agreed to buy Net-a-Porter, its upmarket rival, in an all-share deal that creates an industry leader in the booming online luxury market, with combined sales of 1.3 billion euros ($1.4 billion).

Full news here:

http://uk.fashionmag.com/news/Yoox-buys-Richemont-s-Net-a-Porter-in-all-share-deal,476263.html

[Faust]

Yes, I saw that yesterday on Business of Fashion. Still trying to figure out why.

[eleves]

Guess nothing came out of the Amazon rumours. I'd much rather have net a porter in Yoox's hands anyway

[Faust]

Well, I wouldn't be surprised if they bundled the two in order to sell to Amazon. Amazon is one of the few companies with that kind of cash.

[Shucks]

Yes, I saw that yesterday on Business of Fashion. Still trying to figure out why.

new market segment and synergy in logistics

[radio-aktivität]

Well, I wouldn't be surprised if they bundled the two in order to sell to Amazon. Amazon is one of the few companies with that kind of cash.

The Sueddeutsche Zeitung wrote about it this morning as well. They concluded that Richemond, the former owner of net-a-porter, were offered 2 billion cash by amazon. Apparently, (even more) money isn’t was Richemond needs at the moment, so they found it would be a good idea to stay in the e-commerce themselves.

And then came Yoox…
Net-a-porter ownership now seems to be 50/50 Richemont/Yoox-Shareholders.

[Faust]

new market segment and synergy in logistics

Yes, apparently they will be saving 60 million euros a year in operational costs.

[Fuuma]

Ownership is 50/50 but Yoox has operational control (CEO + more seats on board) so Richemont was really willing to compromise. The idea is to combine the content-generation and high fashion aura of one with the logistical capabilities of the other. I think they want to be a tech giant of fashion not join amazon but hey.

[Shucks]

Yes, apparently they will be saving 60 million euros a year in operational costs.

guess i'm good at at this stuff, eh? anyone need m&a advice? kering? lvmh? richemont?

[jap808]

finally, we have one italian company not been bought by french/chinese/arab company... for now

[Faust]

From a BoF article

"The Net-a-Porter and Yoox merger has created an industry leader in the booming online luxury market, with combined sales of €1.3 billion. This deal highlights the strategic importance of the internet in driving future sales, particularly among the so-called millennials. There is still room for growth in sales and in profits amongst the players: the internet only accounts for five percent of global luxury sales and Yoox Net-a-Porter’s operating margin is only 5 percent, relative to 20 to 25 percent for most big luxury brands. However, the merger is expected to lead to a profitability increase for the newly-created online luxury champion, with sales and operating synergies such as warehouse costs, logistical, back-office and distribution costs."

[Pumpfish]

with sales and operating synergies such as warehouse costs, logistical, back-office and distribution costs."

And a hell of a lot more purchasing leverage with the designers.

[Shucks]

and there is also the potential added efficiency in moving unsold inventory internally from net-a-porter to yoox without any significant transaction costs, and yoox also being a much more efficient platform for selling it off, i guess.

[Faust]

and there is also the potential added efficiency in moving unsold inventory internally from net-a-porter to yoox without any significant transaction costs, and yoox also being a much more efficient platform for selling it off, for sure.

Fixed. This must be a fairly significant cost of doing business.

[gawkrodger]

not sure where else to put this, but I see Yoox workers (I think their drivers, but my Italian is pretty much non-existent) are out on strike