Mytheresa to Finalize Purchase of YNAP on April 23
LONDON — Mytheresa will complete its purchase of Yoox Net-a-porter from Richemont on April 23 after clearing its final regulatory hurdle from the European Commission.
The European Commission was the last regulatory body to green light the deal, which will see Mytheresa buy 100 percent of YNAP in its bid to build a leading, global, multibrand digital luxury group.
After the deal is finalized the parent company will be called LuxExperience B.V. and its ticker will be changed to “LUXE” on the New York Stock Exchange.
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Mytheresa will still exist as a retail brand within the group and trade alongside Net-a-porter and Mr Porter. Yoox and The Outnet will be run separately from the full-price businesses.
The group, and the retail brands, will also have new management teams. Michael Kliger will become group CEO and managing director, while Heather Kaminetsky will become CEO of Net-a-Porter. Toby Bateman will return to Mr Porter, this time as CEO.
Kliger, chief executive officer of Mytheresa, said: “Today marks a significant milestone in our success story as we enter a new and exciting phase for both Mytheresa and all YNAP brands, which is expected to create significant value for our customers, brand partners and shareholders. We are truly excited to have received all required regulatory clearances to finalize the acquisition of Yoox Net-a-porter.”
He added: “We will become one of the leading global, digital luxury platforms for true luxury enthusiasts through having multiple, highly distinguished storefronts, all under the umbrella of LuxExperience. We will generate significant synergies by using a joint back-of-house platform, but most importantly because we will have one of the most relevant overall value propositions for global luxury shoppers and brands.”
Martin Beer, chief financial officer of Mytheresa, said the YNAP acquisition “fulfills Mytheresa´s ambition to build a leading online luxury group worth around 3 billion euros in gross merchandise value per annum.”
He added that in the medium term, the goal for LuxExperience will be to grow to a 4 billion euros GMV per annum business with an adjusted EBITDA margin of more than 8 percent.
Beer added that while the consolidation of YNAP will initially dilute the EBITDA margin at group level “we are uniquely prepared to achieve a fundamental transformation and return the YNAP businesses to profitability.”
The restructuring, he added, is expected to take 24 to 36 months, and is “well-funded with a net cash position of 555 million euros at closing. We will fully leverage Mytheresa’s operational excellence, proprietary technology and proven ability to execute large-scale projects.”
Johann Rupert, chairman of Richemont, said: “We look forward to LuxExperience’s future success, as the receipt of this clearance paves the way for both the Mytheresa and YNAP teams, their brand partners and customers alike to fully benefit from the enhanced value propositions and expanded global reach offered by the combined businesses.”
At the close of the transaction, Mytheresa will issue new shares to Richemont representing 33 percent of Mytheresa’s fully diluted share capital after the issuance of the consideration shares.
At the same time, Richemont will sell YNAP with a cash position of 555 million euros and no financial debt to Mytheresa, which will become YNAP’s sole shareholder.
Richemont will also provide a six-year, 100 million euros revolving credit facility to YNAP. Upon transaction closing, Burkhart Grund, chief financial officer of Richemont, will join the Mytheresa supervisory board.
The company added that Mytheresa, Net-a-porter and Mr Porter will continue to offer “differentiated, but complementary, multibrand offering for luxury customers. The three individual store brands will maintain their own brand identities while sharing central infrastructure resources jointly.”
The off-price division will be separated from the luxury division “for a much simpler and more efficient operating model,” Mytheresa said.
Mytheresa has also announced management changes at group and brand level, with Kliger taking on the top group role and continuing as CEO of the Mytheresa business for the time being. Martin Beer will become chief financial officer and managing director of the group.
As CEO of Net-a-Porter, Kaminetsky will be responsible for “defining and driving a re-energized customer proposition across the globe, as well as simplifying the organizational structures. She joined Mytheresa in 2021 as president North America and led and oversaw all client-facing activities in the U.S. and Canada, “driving tremendous growth for Mytheresa in this major market of luxury consumption.”
For Bateman, the new CEO job at Mr Porter is a homecoming, of sorts. From 2010 to 2020, he helped to oversee the growth at the brand, rising to become managing director in 2015. Mytheresa described him as a “global pioneer of the online menswear fashion business,” having positioned Mr Porter as an authorized, online retailer for many high-end watch brands. He also launched the business’s own label brand “Mr P.”
Mirko Nobili has been promoted to CEO of Yoox, having most recently served as chief operating officer of YNAP. He joined YNAP in 2020 as global operations director. Earlier in his career he spent seven years at Burberry, where he held top roles in beauty supply chain, transformation and global customer fulfilment.
Sabah Naqushbandi, will continue in her role as managing director of The Outnet, overseeing buying, merchandising, creative, and marketing. She has been spearheading the brand’s ongoing transformation by sharpening its value proposition and reinforcing its unique portfolio of previous-season luxury fashion.
