Slaughter and May is advising Richemont, the Swiss luxury goods group, on its partnership with Farfetch and Alabbar

Slaughter and May is advising Richemont, the Swiss luxury goods group, on its partnership with Farfetch and Alabbar. The partnership involves Farfetch acquiring a 47.5% stake and Alabbar acquiring a 3.2% stake in in YOOX Net-a-Porter S.p.A (“YNAP”), to make YNAP a neutral platform with no controlling shareholder.

At completion, Richemont will receive Farfetch shares expected to represent between 12-13% of Farfetch’s issued share capital, in addition to $250 million five years after completion (expected to be settled in Farfetch shares). The potential subsequent phase involves Farfetch increasing its ownership of YNAP’s share capital to 100% through a put and call option mechanism. Each phase is subject to certain conditions, including the receipt of certain antitrust approvals for the initial phase.

As part of the partnership, following completion of the initial phase, most Richemont Maisons will adopt Farfetch Platform Solutions for their e-commerce operations and connect their physical boutiques globally. This marks a step change in Richemont Maisons’ omnichannel distribution capabilities and will enable a seamless client experience.

YNAP is a world leading online luxury and fashion retailer, with a distinctive offering across its multi-brand stores: Net-a-Porter, Mr Porter, YooX and The Outnet. Richemont owns a portfolio of prestigious Maisons and businesses including its Specialist Watchmakers, Jewellery Maisons and Fashion & Accessories Maisons. Farfetch is a leading global platform for the luxury fashion industry which operates an e-commerce marketplace for boutiques and services clients with e-commerce and technology capabilities through Farfetch Platform Solutions. Alabbar, Richemont’s longstanding partner in the Gulf States, is one of the leading industrial and investment houses in the Middle East with exposure to a wide variety of industries including luxury retail.

Slaughter and May is working as an integrated team with Gatti Pavesi Bianchi Ludovici, led by partners Stefano Valerio, Franco Barucci and Amélie Gillet, and Cravath, Swaine & Moore LLP, led by partner George Stephanakis.