The Chinese retail-to-drugs conglomerate backed by billionaire Guo Guanchang, Fosun International, is looking to sell a stake in its fashion unit to outside investors in an effort to help revamp the business, according to sources close to the company.
Fosun Fashion Group, whose portfolio includes French luxury brand Lanvin, is hoping to raise more than $100 million, and has started gauging interest from potential investors, including several Asian family offices.
According to the sources, proceeds will be used to help expand the brands and improve their profitability. Fosun Fashion Group is considering a Paris initial public offering in several years among other options.
Lanvin, which is France’s oldest fashion house with roots dating back to 1889, operates in more than 50 countries worldwide, according to its website. Fosun Fashion is also the majority shareholder of Austrian lingerie maker Wolford AG and owns stakes in Germany’s Tom Tailor Holding, Italian suitmaker Raffaele Caruso and American women’s brand St. John Knits.
Fosun Fashion follows other Chinese companies in seeking to capitalise on a string of splashy acquisitions overseas. Ruyi Group, once a little-known Chinese textile maker, bought French affordable-luxury group SMCP SA in 2016 and completed a Paris initial public offering of the business the next year.
Deliberations are at an early stage, and details of the fundraising could change. It’s also possible that Fosun International could put more of its own capital into the fashion unit.
