Farfetch Limited, a global technology platform for the luxury fashion industry; and New Guards Group, a brand platform for luxury brands’ design, production and distribution; announced that they have entered into an agreement for Farfetch to purchase 100% of the shares of New Guards for a Total Enterprise Value of $6751 million. The consideration payable by Farfetch will be split equally between cash and Farfetch shares, with the exact amounts to be determined at completion following customary adjustments.
“The addition of New Guards’ brand platform brings a creative and industrial dimension to our suite of capabilities which, combined with our community of more than 650 boutiques, enables us to power and promote both new and existing creative names in the luxury industry to build the brands of the future,” said José Neves, CEO and co-chair of Farfetch. “The brands of the future will have three core elements. First, a creative tastemaker able to leverage digital channels to engage a global community; second, best-in-class design, planning and manufacturing; and third, direct-to-consumer global online distribution, complemented by a connected wholesale presence in the most prestigious physical boutiques.”
The acquisition of New Guards augments Farfetch’s strategy to be the global technology platform for luxury fashion, empowering individuality, and connecting creators, curators and consumers. New Guards is a brand platform that has launched several global luxury fashion brands, with a proven track record of identifying and nurturing some of the most culturally relevant emerging brands, designers and creative directors in the sector. New Guards provides the resources and expertise to transform early-stage brands into profitable, high growth businesses, driving rapid, profitable growth for New Guards itself.
“We started New Guards Group because we had a vision to build a platform that could support the best creative talent in the world and build iconic brands,” said Davide de Giglio, do-founder and CEO of New Guards Group. “Creative visionaries need to be empowered with best-in-class design studios, industrial capabilities and global distribution channels. Farfetch has the technology, expertise and vision to take our business to the next level and unleash the talent of the future.”
The acquisition underscores Farfetch’s commitment to making strategic investments in assets that enhance and accelerate its existing strategy. The Board of Farfetch believes that the transaction will create significant value for Farfetch shareholders, and deliver meaningful benefits to consumers, designers, retailers and manufacturers within the luxury fashion ecosystem and, ultimately, enable the “Brands of the Future.”
“This is what the combination of Farfetch and New Guards brings to the industry. Together, we can not only continue to develop New Guards’ current portfolio, but will also be uniquely positioned to bring many new talents to life with the combined layers of the Farfetch platform,” Neves said. “I believe this new dimension of our strategy expands and advances our vision of being the global platform for luxury, at the service of creators, curators and consumers, united for the love of fashion.”
Farfetch will purchase 100% of the shares of New Guards for a Total Enterprise Value of $675 million. The consideration payable by Farfetch will be split equally between cash and Farfetch shares, with the exact amounts to be determined at completion following customary adjustments.
