MILAN — Salvatore Ferragamo SpA has acquired the remaining 20 percent stake in its Southeast Asia and Korea venture from Trinity Luxury Brands Holdings Ltd. and Ferrinch (L) Ltd., which are wholly-owned subsidiaries of Trinity Ltd.
Trinity owns brands Cerruti 1881, Gieves & Hawkes, Kent & Curwen and D’Urban and is publicly listed on the Hong Kong Stock Exchange.
“The group is principally engaged in the retailing and wholesale of premium menswear in Greater China, Singapore and Europe, as well as licensing its fully owned brands globally,” said Trinity, adding that the disposals were in line with this strategy and that it expected they will generate a gain of about $2.1 million. “Such gain represents primarily 20 percent of the surplus, being the difference between current market value and book value, arising from revaluing a retail property owned by Ferragamo Korea against costs associated with the disposals,” said the group.
According to Trinity, the deal is for a total cash consideration of about $16.1 million.
The companies involved are Ferragamo Korea Ltd., Ferragamo Sdn. Bhd in Malaysia, Ferragamo Pte Ltd. in Singapore and Ferragamo Ltd. in Thailand.
The joint venture was inked in 2012, which provided for a put-and-call option to sell/acquire the remaining 20 percent shares of the said four companies, allowing the Florence-based firm to own 100 percent of the companies’ share capital.
The cooperation between Ferragamo and Trinity Group has been a fruitful one in Korea and Southeast Asia, where the fashion company counts a network of about 70 stores. The Asia-Pacific region is key for Ferragamo. In the first nine months, sales in the area represented 35.5 percent of sales, which totaled 360 million euros, or $399.6 million.
The company is going through some changes at its management and design levels. Eraldo Poletto succeeded Michele Norsa as chief executive officer in August, and Ugo Giorcelli will succeed Ernest Greco as chief financial officer in March. Poletto is now relying on a trifecta of designers: Fulvio Rigoni, design director for women’s wear; Guillaume Meilland, design director for men’s wear, and Paul Andrew as design director of women’s footwear. Creative director Massimiliano Giornetti, who was in charge of all categories, left in March.