in

Richemont to Divest YNAP to Mytheresa for $609.7 Million

Richemont, the Swiss luxury group owned by South African billionaire Johann Rupert, has agreed to sell its full stake in YOOX NET-A-PORTER (YNAP) to MYT Netherlands Parent B.V. (Mytheresa) for $609.7 million. This strategic initiative builds on Richemont’s attempts to increase YNAP’s profitability in the increasingly competitive online luxury retail industry.

According to the deal, Richemont will transfer YNAP with a €555-million ($609.7 million) debt-free cash position and a €100-million ($109.9 million) revolving credit line to ensure liquidity for future operations. The transaction is scheduled to finalize in the first half of 2025, subject to regulatory approvals. Following the shutdown, YNAP’s activities will be incorporated into Mytheresa’s worldwide luxury retail platform.

As part of the arrangement, Richemont will acquire a 33% ownership investment in Mytheresa and appoint a representative and an observer to its Supervisory Board. Richemont, on the other hand, expects to write down YNAP’s net assets by around €1.3 billion ($1.43 billion), owing mostly to exchange rate movements and changes in Mytheresa’s share price.

Richemont’s Chairman, Johann Rupert, expressed confidence in Mytheresa’s potential to strengthen YNAP’s assets and improve consumer experiences around the world. “YNAP is known for its exceptional customer service and excellent brand ties. We are certain that Mytheresa will build on these capabilities and provide better services to both customers and partners,” Rupert said.

Richemont’s divestiture shifts its attention back to its core luxury brands. YNAP’s three digital platforms — NET-A-PORTER, MR PORTER, and YOOX — will now operate under Mytheresa, broadening its portfolio and strengthening its position in the global luxury e-commerce industry.

According to Bloomberg, Johann Rupert, Africa’s richest man with a net worth of $14.2 billion, has a 10.18 percent stake in Richemont and 51% of its voting rights, worth $9.59 billion. Under his direction, Richemont focuses on purchasing businesses known for their great inventiveness and workmanship, ensuring the company’s position in the premium market.

Mytheresa’s recent move will allow it to benefit from YNAP’s logistics and customer support skills, strengthening its market position. Richemont’s strategic exit demonstrates its desire to focus on high-margin premium brands, while Mytheresa stands to benefit from the increased digital infrastructure.

Leave a Reply

Your email address will not be published. Required fields are marked *

Royal Bank of Canada Boosts Investment in South African Retailer Clicks

BREAKING: Former Judge Willem Heath Dies at 79