Online retailer Farfetch has acquired New Guards Group — the Italian production and holding company responsible for the likes of Off-White™, Palm Angels, and Heron Preston — for $675 million, Business of Fashion reports. According to the announcement, New Guards Group co-founder Davide De Giglio will remain chief executive, while Andrea Grilli will stay as chief commercial officer.
New Guards Group is said to own an average of 75 percent of its portfolio of brands, as De Giglio and co-founder Claudio Antonioli own 46 percent of New Guards. The business’ revenue increased 59 percent year-over-year in the first half of 2019, leaving the gross profit margin up 55 percent. Conversely, Farfetch’s second-quarter revenue has risen 43 percent in comparison to 2018.
Farfetch is expected to pay the $675 million for New Guards Group in cash and shares. The deal will reportedly close in the third quarter of 2019.
For more on Farfetch’s acquisition of New Guards Group, visit Business of Fashion.