Online shopping site Farfetch make are set to make massive waves in the fashion industry, with the acquisition of the New Guards Group for $675M.
Farfetch have been in talks with The New Guards Group for months now, but have managed seal the deal. The $675M deal will sees Farfetch own 100% of New Guards’ shares, whilst splitting the $675M in half, with cash and shares.
The award-winning site is thrilled with the deal, Farfetch believe it will hold significant value and importance for the shareholders. The company also believe it will be beneficial for consumers, retailers, designers and manufacturers.
“The addition of New Guards’ brand platform brings a creative and industrial dimension to our suite of capabilities which, combined with our community of more than 650 boutiques, enables us to power and promote both new and existing creative names in the luxury industry to build the brands of the future,” said Farfetch Ceo Jose Neves.
Despite not being as known as its competitors, The New Guards Group are a growing power streetwear. New Guards not only own, 72 Pocket Cargo Pants, but also Heron Preston, Palm Angels and the extremely popular Off-White. With Off-White ‘s constantly growing this could be a masterstroke from the company.
However, a representative for Off-White clarified that Off-White LLC is controlled by Virgil Abloh as he owns the trademark of the brand. The representative said:
“NGG is our exclusive licensee pursuant to a multi-year agreement. The New Guards Group transaction with Farfetch will not affect Off-White day-to-day operations as the New Guards Group team will become part of Farfetch. We look forward to our ongoing work together.”
Although Farfetch is a relatively young company, their growth has been somewhat remarkable, pairing up with multiple major fashion companies. In 2017, Farfetch acquired Purchased Stadium Goods for $250M, as well as none other than Chanel.
Despite the acquisition of The New Guards Group, Farfetch’s stock plummeted following the acquisition of the company. This was the lowest price for the company since IPO last year. Shareholders will be hoping that the deal with The New Guards Group can help the company become top dog in the street wear world.
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