Fortune Fountain Capital Agrees to Acquire 88.8 Percent of the Shares of Baccarat
June 6, 2017,
Photo Credit: Photographer: patrick Hertzog/AFP via Getty Images
HONG KONG, June 2, 2017 -- Fortune Fountain Capital (FFC), a Chinese investment group, has agreed to buy controlling stake in French crystal maker Baccarat.
FFC will acquire the shares from the Starwood Capital and L Catterton affiliates at a price of 222.7 euros per share. 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 will maintain the entire production and workforce in Baccarat, France. Daniela Riccardi, CEO of Baccarat since 2013, will continue to lead the company with the 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.
Coco Chu, Chairwoman of FFC, said, "We have been impressed by the exceptional know-how and expertise of Baccarat's employees. We are convinced that FFC, with its extensive global business network, is an ideal strategic partner to position Baccarat for future growth and value creation. We attach the greatest importance to maintaining this company's 250-year history of excellence, and most notably its ‘Made in France’ identity. We will support the development of the company, relying on Riccardi and her talented team, who are best suited to drive Baccarat's upcoming development strategy. It is our firm belief that we will make Baccarat a most recognized icon of luxury lifestyle."
Riccardi commented, "We are very pleased to enter a new phase of our development by partnering with Fortune Fountain Capital. FFC understands and deeply respects the DNA of the brand and its heritage. We share the same vision for the future of our business, especially regarding the expansion into new products and geographies, such as Asia and North America. We will benefit from FFC's financial strength and expertise in these markets, as well as from its extended base of partners and clients in the luxury industry."
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