Farfetch, the UK-based luxury e-commerce giant, has recently acquired a majority stake in Italian streetwear brand Palm Angels through its subsidiary New Guards Group (NGG). NGG, known for bringing together top labels in the fashion industry, now holds a 60% stake in Palm Angels, a brand that has experienced rapid growth in recent years.

The acquisition was confirmed by Farfetch in a statement released earlier this summer. The document stated that NGG had successfully acquired 60% of the outstanding capital of Palm Angels S.r.l, the brand’s owner. Since Farfetch acquired NGG in 2019, Palm Angels has witnessed a significant increase in both revenues and profitability. Furthermore, NGG has plans to purchase the remaining 40% stake in Palm Angels by 2026.

The transaction involved the acquisition of stakes originally held by Palm Angels’ founder Francesco Ragazzi and NGG co-founder Davide de Giglio. Farfetch acquired a 30% stake from each individual, leaving Ragazzi and de Giglio with a 20% stake each. The financial details of the transaction have not been disclosed.

Palm Angels, established in 2015, is currently experiencing a period of accelerated growth and is involved in various collaborations. The Italian brand, known for its stylish streetwear aesthetics, has partnered with brands such as Missoni, Vilebrequin, Mate, and Team Wang for capsule collections. It has also expanded into the fragrance market with Sweden’s 16-69 and recently entered the kidswear category with a line for children aged 4-12. Palm Angels has plans for further expansion into eyewear. The brand’s gothic logo and cannabis leaf motif have become recognizable symbols, and its range of t-shirts, sweaters, and tracksuits embodies a laid-back Californian vibe with an Italian touch, thanks to Ragazzi’s creative direction, drawing from his previous experience at Moncler.

The acquisition of a majority stake in Palm Angels by Farfetch can be seen in the context of its previous acquisition of NGG. Two years ago, Farfetch spent $675 million to acquire NGG, which owns brands like Off-White, Marcelo Burlon County of Milan, Heron Preston, Alanui, Unravel Project, and Kirin Peggy Gou. Since then, NGG has also acquired Opening Ceremony and Ambush. However, NGG usually manages the production and distribution licenses for these brands, with NGG holding partial ownership of some of them. For instance, NGG was an operational partner for Off-White, which allowed LVMH to acquire a 60% stake in the brand last summer. Nevertheless, Farfetch still retains the production and distribution license for Off-White for the next two decades. Given this context, it is clear why Farfetch is interested in securing control over Palm Angels, one of NGG’s most popular and successful brands, to avoid losing it to another buyer.

This acquisition aligns with Farfetch’s strategy of solidifying its position in the luxury fashion market and acquiring successful brands with potential for growth. By taking control of Palm Angels, Farfetch aims to further expand its presence in the streetwear and luxury fashion segments. With NGG’s expertise in production and distribution, combined with Farfetch’s global e-commerce platform, Palm Angels is expected to continue its growth trajectory under its new ownership.

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