Luxury conglomerate, Richemont, offloads Yoox Net-A-Porter for an impressive $610 million.
In a significant move, luxury goods conglomerate Richemont has announced it will sell its YNAB (You Need A Budget) business to German e-commerce retailer Mytheresa for €555 million. The deal, subject to contractual conditions, is expected to close in the first half of 2025, pending customary conditions and antitrust approvals.
Mytheresa, known for its luxury fashion offerings, will acquire YNAB, the parent company of Net-A-Porter and Mr Porter. While Richemont will no longer hold the YNAB business, it will receive a 33% equity stake in Mytheresa as part of the transaction.
The acquisition aims to create a global digital luxury group, with each of the three brands offering differentiated collections. Michael Kliger, CEO of Mytheresa, stated, "The transaction will allow us to share infrastructure, including technology, to create a stronger platform for growth."
Richemont Chairman Johann Rupert expressed confidence in Mytheresa's ability to leverage YNAB's assets to enhance customer and business partner experiences globally. In its latest earnings report in July, Richemont reported a 1% revenue decrease to €5.3 billion.
YNAB, listed as Richemont's discontinued operations, saw a 15% decrease in sales at the time. Richemont began looking for other YNAB buyers following the sale of Farfetch to Coupang, which disrupted initial plans to sell YNAB to Farfetch.
The deal does not include Richemont's stake in Yoox Net-A-Porter China. Richemont will provide a €100 million revolving credit facility to YNAB for a six-year period to support the business during the transition.
The off-price business, not mentioned in the earlier bullet points, is anticipated to benefit from the separation from luxury and a simpler operating model, leading to growth and profitability. The three brands will share a significant portion of their infrastructure to create synergies and improve efficiencies.
Richemont expects a write-down of YNAB assets amounting to approximately €1.3 billion following the transaction. The company will continue to maintain its distinct brand identities across its remaining businesses.
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