Luxury ecommerce takes a new turn as Richemont sells YNAP to MyTheresa.
- YNAP will be owned entirely by MyTheresa, solidifying its position in the luxury market.
- The deal includes a significant financial restructuring, including a revolving credit facility.
- Richemont expects a notable write-down, impacting its financial statements.
- This acquisition aims to streamline operations and enhance growth across distinct brands.
Luxury conglomerate Richemont has finalised an agreement to transfer its Yoox Net-a-Porter (YNAP) division to MyTheresa, a German-based e-commerce platform. In exchange, Richemont will secure a 33% stake in MyTheresa, marking a significant reshuffle within the luxury ecommerce sector.
The completion of this acquisition, expected by the first half of 2025, will see MyTheresa acquiring full ownership of YNAP. This strategic move is anticipated to enhance MyTheresa’s footprint in the luxury goods market, providing it with comprehensive ownership and control over YNAP’s operations.
As part of the financial terms, Richemont is disposing of YNAP with a cash reserve of £463 million (€555 million). Furthermore, it will extend a six-year £83 million (€100 million) revolving credit facility to bolster YNAP’s financial structure. This restructuring is expected to result in a write-down of approximately €1.3 billion of YNAP’s net assets, reflecting the challenges Richemont faced in the luxury e-commerce space.
MyTheresa’s strategy post-acquisition involves maintaining three distinct storefronts: MyTheresa, Net-a-Porter, and Mr Porter. The separation of YNAP’s off-price segments – Yoox and The Outnet – is intended to simplify operations and drive profitability. MyTheresa’s CEO, Michael Kliger, expressed his enthusiasm about forming a leading, multi-brand luxury group globally that focuses on distinct customer experience and service.
The transaction concludes Richemont’s year-long endeavour to secure a new proprietor for YNAP, following an unfulfilled deal with Farfetch due to its acquisition by Coupang. Richemont originally acquired YNAP in 2018 valuing it at €5.3 billion. However, the luxury market’s volatility led to a substantial non-cash write-down of €3.4 billion last year.
In recent years, MyTheresa has remained resilient, posting a 9.8% increase in sales to €840.9 million last year, with adjusted EBITDA reaching €25.8 million. This acquisition is positioned to leverage synergies, doubling profitability, and enhancing growth amid a challenging luxury e-commerce environment.
The acquisition of YNAP by MyTheresa marks a strategic consolidation within the luxury e-commerce sector, offering potential for enhanced growth and streamlined operations.
