Mytheresa Explores Buyout and Potential Acquisition of Net-a-porter
Mytheresa is currently working with investment bankers on two fronts, according to sources. The company is pitching investors on a potential buyout that would see it go private. Additionally, Mytheresa is exploring the option of acquiring Net-a-porter, as reported by The Financial Times.
The acquisition of Net-a-porter could significantly bolster Mytheresa’s operations, especially since Net-a-porter has a complementary distribution system in the U.S. and Asia, compared to Mytheresa shipping out of Germany.
Mytheresa is partnering with bankers at Morgan Stanley and B. Riley as it assesses its options. However, other players are also interested in Net-a-porter, with private equity firm Bain Capital and off-price fashion player BestSecret expressing interest in various aspects of the business.
Compagnie Financière Richemont plans to sell its troubled Yoox Net-a-porter operation this year, following the collapse of a previous deal with Farfetch.
Amidst shifts in the luxury e-commerce landscape, Mytheresa remains a solid player. Matches recently underwent changes, Farfetch aligned with Coupang, and Mytheresa stands as one of the few strong contenders in the market. Saks owner HBC is currently in discussions to acquire Neiman Marcus, hinting at a period of industry consolidation.
Despite challenges faced by luxury e-commerce, Mytheresa continues to succeed by focusing on pinnacle luxury products. The company’s third-quarter results are eagerly anticipated, with net sales expected to increase and adjusted earnings to rise significantly.
Mytheresa’s CEO, Michael Kliger, expressed satisfaction with the company’s performance and emphasized the community-building aspect of the platform. However, while Mytheresa initially gained market capitalization after its IPO, its value has since decreased, prompting considerations for future strategies.
Mytheresa acknowledged that it evaluates growth opportunities, including M&A activities. The company declined to comment further on potential deals. Similarly, key stakeholders such as Morgan Stanley, B. Riley, Richemont, Bain, and BestSecret refrained from providing comments on the matter.
With Wall Street turning away from e-commerce, Mytheresa’s future may involve navigating a deal to revive investor interest or transition away from the public eye.