Fortune Fountain Capital (“FFC”), a prominent Asian financial group established as a family office, today announced an irrevocable offer to acquire 88.8% of the share capital of Baccarat, the internationally renowned French luxury crystal Maison, from affiliates of Starwood Capital Group and L Catterton.
FFC would acquire the shares from the Starwood Capital and L Catterton affiliates at a price of €222.7 per share (the "Block Purchase"), for c. €164m. The closing of the Block Purchase would be followed by the filing with the Autorité des Marchés Financiers of a mandatory tender offer for the remaining outstanding shares at the same price per share. At this stage, FFC does not intend to have Baccarat delisted from Euronext Paris. However, depending on, inter alia, the outcome of the tender offer process and what the best interest of Baccarat would call for, FFC may reconsider its position and implement a squeeze-out procedure.
The proposed Block Purchase by FFC is subject to the applicable Work Council consultation process in France and certain regulatory approvals in the People's Republic of China.
The acquisition by FFC will enable Baccarat to accelerate its strategic international plans, including expansion into emerging markets such as Asia and the Middle East, as well as continued growth across existing developed markets, particularly North America. FFC is committed to investing extensively in Baccarat’s core business and supporting the company’s development through further expansion into adjacent luxury categories, by fully leveraging its extensive business network in the luxury sector and its close relationships with various prominent families across Asia and Europe.
FFC will maintain the entire production and workforce in Baccarat, and honor the crystal makers’ two-and-a-half centuries of heritage and perfect craftsmanship. Ms. Daniela Riccardi, CEO of Baccarat since 2013, who has significantly contributed to the company’s financial performance improvement during her tenure, with sales reaching c. EUR 148m and EBITDA growing to c. EUR 13m in 2016, will continue to lead the company with the strong support of FFC. The hotel license with Starwood Capital Group’s controlled affiliate will be maintained in the framework of a partnership between Baccarat, FFC and Starwood Capital Group. The license to operate and brand Baccarat Hotels has been retained by Starwood Capital Group’s controlled affiliate.
BACCARAT FAR EAST LIMITED