Global and Italian M&A Industry Insights Fashion 1H21
Emanuela Pettenò Partner | Consumer and Markets Deals Leader +39 348 8519841 Email
Fashion – Global M&A Quarterly Trends by sub-industry In 1H21 investors confirmed their interest for the Fashion industry, with an increase in the number of deals vs. 1H20 (+8% or + 27 deals) and a 44% growth in deal value. The comparison with 1H20 reflects the slowdown due to COVID-19 spread in 2Q-20, recovered since 4Q20 Fashion, Global Deal Value and Volume Q1’18-Q2’21 • • •
VF Corporation acquisition of Kontoor Brands for $2.1bn ANTA, FV Fund, Anamered Investments Inc and Tencent Holdings acquisition of Amer Sports for $5.4bn Michael Kors acquisition of Versace for $2.1m
• •
Permira acquisition of Golden Goose for $1.4m
VF Corporation acquisition of Supreme for $2.4bn Moncler acquisition of Stone Island for $1.5bn
•
250
14,000 19 42
Deal Volum e
20
19 13 35 13
150 71
55
11 10
39
40
28 17 14
52
19
70
41
32
11
10
12,000
14 20
51
40
51
63
100
12
14
-
71
79
73 67
82
72
16
21 5
18
56
16
8,000
44
53
50
65
4 Q3'20
19
12
15
14
8
11
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Other
6,000
28
76
11
Footwear
11
10,000
4,000
64
10
Supply chain
17 40
18
Apparel
30
24
38
17
Accessories
36
3 18
12
40
68
14
45
54
50
14
Sportswear
80
82
2,000
3 Q4'20
14
10
Q1'21
Q2'21
-
Deal Value (US$m )
20 200
Most relevant 1H21 deals included: - South Korea: F&F & Co. ($1.4bn 39% stake) - Brazil: Groupo del Moda soma Cia Hering ($0.9bn, 100%) - Exor / Louboutin: $0.6bn (24%) - Asos / TopShop: $0.4bn (100%) - Rhone Capital / Saks: $0.5bn (minority) - JD Sports Fashion/DTLR Holding: $0.5bn (100%)
Deals industry Accessories Apparel Supply chain Footwear Other Sportswear Total Deal Vol.# Deal Value $m
FY20 # Op. 26 247 160 56 132 54 675 17,429
1H20 #Op. 19 103 92 21 66 26 327 5,973
1H21 #Op.
Delta 1H21 vs. 1H20
24 158 100 27 42 3 354 8,622
26% 53% 9% 29% (36%) (88%) 8% 44%
Deal Value
Source: Refinitiv and PwC Analyses, based on closed and pending deals, allocated to quarters based on the announcement date. Deal value available for c. 37% of deals at 1H21 and c. 41% at 1H20
PwC | M&A Industry Insights | Consumer Markets
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Fashion – Global Deals Volumes - Corporate vs. PE Deals led by corporate buyers historically represent ca. 71% of total deal volumes in the Fashion industry. 1H21 shows an increase in volumes compared to 1H20 (+8%), with a growth in Q2 driven by +14 corporate deals and +25 PE deals with respect to Q2’20 Corporate vs Private Equity - deal volumes Global Fashion Market Q1’18
Q2’18
Q3’18
Q4’18
Q1’19
Q2’19
Q3’19
Q4’19
Q1’20
Q2’20
Q3’20
Q4’20
Q1’21
Q2’21
FY18
FY19
FY20
1H20
1H21
237
211
196
225
205
206
220
184
190
137
176
172
178
176
869
815
675
327
354
Corporate 67%
66%
69%
74%
71%
72%
69%
70%
71%
76%
73%
63%
78%
67%
69%
71%
71%
73%
73%
PE
34%
31%
26%
29%
28%
31%
30%
29%
24%
27%
37%
22%
33%
31%
29%
29%
27%
27%
Total
33%
250
Deal Volume
200
150
100
50
-
18Q1
18Q2
18Q3
Corporate - Cross Border
18Q4
19Q1
Corporate - Unknown
19Q2
19Q3
19Q4
Corporate - Domestic
20Q1
20Q2
PE - Cross Border
20Q3
20Q4
PE - Unknown
21Q1
21Q2
Deal volume (#)
FY20
1H20
1H21
PE Corporate Total
198 477 675
88 239 327
97 257 354
Delta 1H21 vs. 1H20 10% 8% 8%
PE - Domestic
Source: Refinitiv and PwC Analyses, based on closed and pending deals, allocated to quarters based on the announcement date.
PwC | M&A Industry Insights | Consumer Markets
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Fashion – Italian M&A Quarterly Trends by sub-industry The 2020 strong increase of Italian Fashion market in terms of deal value (+$1.3bn vs 2019) is impacted by two mega deals in 1Q (Golden Goose/Permira) and 4Q (Stone Island/Moncler). Deals volumes doubled in 1H21 vs. 1H20 (+#14), boosted by an increase of small deals in the supply chain segment. The Top deals in value are Exor / Louboutin (24% share, $0.6bn) and LVMH / Tod’s (6.8% share, $90m) Fashion, Italy Deal Value and Volume Q1’18-Q2’21 • Michael Kors acquired the entire share capital of Gianni Versace SpA ($2.1bn) • Chanel SAS acquisition of 25 40% stake in Renato Corti for $169m
•
Farfetch acquisition of New Guards Group Holding for $675m
•
Stone Island acquisition by Moncler ($1.46bn) Zimmermann acquisition by Style Capital (~$0.4bn)
2,500
•
1 20
Deal Volum e
•
Golden Goose sold to Permira for $1.3bn
2,000
5
15
1 3
8
1 10
8 8
1 1
5
4
4
4
3
Q1'18
Q2'18
-
3
2
1 Q3'18
1
6
Q4'18
Accessories
Q1'19 Apparel
5
4
2 Q2'19
Q3'19
Supply chain
9
Deals industry
3 3
4
3
1,500
1,000
4 1
4 4
1
3
2
3
1 -
1 3
1 2
1 3
1
2
3
Q4'19 Footwear
2
2
2 Q1'20
2 Q2'20
Other
7 1 1 1 Q3'20 Sportswear
500 2 3
3 1 Q4'20
Q1'21
1 Q2'21
Most relevant 1H21 deals included: - Exor / Louboutin: $0.6bn (24% share) - LVMH / Tod’s ($90m, 6.8% share) - OTB / Jil Sander (100%, undisclosed) - Fosun / Sergio Rossi (100%, undisclosed) - Made in Italy Fund / Arcadia (Dondup) – undisclosed - LVMH / Pucci (33%)
Deal Value (US$m )
•
Exor NV Acquisition of Loboutin SAS for €0.6bn
-
Accessories Apparel Supply chain Footwear Other Sportswear Total Deal Vol.# Deal Value $m
FY20 # Op. 1 11 9 6 3 30 2,861
1H20 #Op. 4 4 3 1 12 1,395
1H21 #Op.
Delta 1H21 vs. 1H20
1 6 11 6 2 26 749
n.a. 50% 175% 100% 100% n.a. 117% (46%)
Deal Value
Source: Refinitiv and PwC Analyses, based on closed and pending deals, allocated to quarters based on the announcement date. Deal value available for c. 12% of
PwC | M&A Industry Insights | Consumer Markets
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Fashion – Italian Deals Volumes - Corporate vs. PE Differently from the global market, the number of deals is more balanced between Corporates and PEs, following a strong interest of both local and international PEs on Italian Targets. In 1H21 the growth in volumes is led by Corporates
Corporate vs Private Equity - deal volumes Italian Fashion Market Q1’18
Q2’18
Q3’18
Q4’18
Q1’19
Q2’19
Q3’19
Q4’19
Q1’20
Q2’20
Q3’20
Q4’20
Q1’21
Q2’21
FY18
FY19
FY20
1H21
Total
15
9
9
15
8
13
23
17
8
4
3
15
9
17
48
61
30
26
Corporate
40%
44%
56%
60%
50%
23%
48%
41%
63%
50%
33%
20%
78%
53%
50%
41%
37%
62%
PE
60%
56%
44%
40%
50%
77%
52%
59%
38%
50%
67%
80%
22%
47%
50%
59%
63%
38%
25
Deal Volume
20
15
10
5 Deal volume (#)
18Q1
18Q2
18Q3
18Q4
Corporate - Cross Border
19Q1
19Q2
19Q3
Corporate - Domestic
19Q4
20Q1
20Q2
PE - Cross Border
20Q3
20Q4
21Q1
21Q2
PE Corporate Total
FY20
1H20
1H21
11 19 30
5 7 12
10 16 26
Delta 1H21 vs. 1H20 100% >100% >100%
PE - Domestic
Source: Refinitiv and PwC Analyses, based on closed and pending deals, allocated to quarters based on the announcement date
PwC | M&A Industry Insights | Consumer Markets
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