Lanvin Group, controlled by Chinese billionaire Guo Guangchang’s Fosun International, has agreed to merge with blank check firm Primavera Capital Acquisition Corp. (PCAC), in a transaction valuing the combined entity at $1.9 billion.

The merger with PCAC, a special purpose acquisition firm backed by China-based global investment firm Primavera Capital Group, will pave the way for the New York listing of the Lanvin Group, owner of the French fashion house acquired by Fosun in 2018. , which values ​​the Lanvin Group at $1.5 billion, the combined entity will raise $544 million in the IPO in New York.

“We plan to accelerate our portfolio growth through organic development and disciplined acquisitions, building a global portfolio of iconic luxury fashion brands that appeal to a broad customer base,” the Lanvin Group Chairman and CEO said on Wednesday. , Joann Cheng, in a statement. . “The Lanvin Group will not only enable these brands to flourish in their country of origin, but also in Asia and North America, the largest luxury markets in the world.

The Lanvin brand has its roots in France’s oldest fashion house, founded by French fashion designer Jeanne Lanvin in 1889. The group is currently headquartered in Shanghai, where its parent company Fosun is also based. It owns and manages Lanvin and other iconic brands such as Italian shoemaker Sergio Rossi, Australian lingerie brand Wolford, American womenswear brand St John Knits and Italian menswear brand Caruso.

“We were looking to back an emerging leader in the consumer space with enduring global appeal and significant growth prospects in Asia,” Max Chen, president and CEO of Primavera, said in a statement. “In the Lanvin Group, we see a unique global company with a rich heritage, an entrepreneurial management team and a differentiated strategy to build luxury power for a new generation of consumers, benefiting in particular from the booming luxury consumption in Asia.”

PCAC will inject $414 million in cash into the combined entity as part of the IPO proceeds, while Fosun and other investors, including Japan’s Itochu Corp., will contribute $130 million. The proceeds will be used to accelerate Lanvin’s growth and fund future acquisitions, Lanvin said.

With the global luxury goods market expected to reach $430 billion by 2025, Lanvin said it was well positioned to seize growth opportunities. The group’s global revenue more than doubled in 2021, driven by strong demand from Greater China, North America as well as online sales.

Lanvin’s parent company, listed in Hong Kong, has created international brands, including Club Med. Besides tourism, Fosun has interests in mining, pharmaceuticals and steelmaking. It was co-founded in 1992 by Guo and three classmates from Shanghai Fudan University: Liang Xinjun, Wang Qunbin and Fan Wei. Today, only Guo and Wang are still with Fosun, Liang resigned from the company in 2017, and Fan resigned in 2015.