Farfetch Acquires Off-White, Heron Preston Parent Company New Guards Group

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Online marketplace Farfetch just acquired OffWht's parent company:

Farfetch will use their capabilities to create the "brands of the future."Author:Dhani MauPublish date:Aug 8, 2019Alongside strong second-quarter earnings , Farfetch announced a major acquisition on Thursday afternoon: It has purchased 100% of New Guards Group, the Milan-based parent company of Off-White, Heron Preston and Palm Angels in a deal valued at $675 million.

For Farfetch, the addition of New Guards Group, which is known for having developed and elevated the aforementioned brands from their infancies, adds a new layer to its business model — dubbed "brand platform" in a press release. Farfetch will have the group's design, production and brand development capabilities.

"The brands of the future will have three core elements. First, a creative tastemaker able to leverage digital channels to engage a global community; second, best-in-class design, planning and manufacturing; and third, direct-to-consumer global online distribution, complemented by a connected wholesale presence in the most prestigious physical boutiques," Farfetch CEO José Neves said in a statement.

Farfetch uses Off-White as an example. Currently, Off-White is one of Farfetch's top 10 brands in terms of Gross Merchandise Value, but it's only available on the site through Farfetch's boutique partners; the vast majority of its sales come from wholesale. Farfetch will soon introduce and power a new Offwhite.com on the platform, and align Off-White's inventory with its boutique partners in a model it's calling "connected wholesale.

Farfetch says it plans to do this with all of New Guards Group's "existing and future" portfolio brands, suggesting that more acquisitions are on the horizon. This news follows last year's IPO and subsequent acquisition of Stadium Goods.Tagsterms:New Guards GoupFarfetchNetworkdesigners:Off-WhiteHeron Preston

 

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