LONDON – Exor, the owner of Ferrari and The Economist Group, has invested in Hermès International’s China project Shangxia, the company revealed Wednesday.
Exor will invest around 80 million euros in Shang Xia by the end of 2020 via a reserved capital increase that will result in it becoming the company’s majority shareholder. Hermès will remain as an important shareholder alongside Exor and founder Jiang Qiong Er.
The company said with this agreement, Shang Xia will benefit from the support of two family-owned companies, one with French roots and one with Italian roots, both with a common culture of excellence and entrepreneurship.
Axel Dumas, executive chairman of Hermès, said: “We are proud of how far Shang Xia has come in the last 10 years, demonstrating our confidence in the brand’s unique model and original proposal.
“With Exor, we share a long family and entrepreneurial culture on which we will be able to build Shang Xia’s new successes,” he added.
John Elkann, Exor’s chairman and chief executive officer, said, “We’re delighted to be able to share with Shang Xia our experience of developing global luxury brands as well as the entrepreneurial spirit we bring to all our companies. Shang Xia represents a unique opportunity to build the first global luxury lifestyle brand of genuine Chinese heritage.
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“With Hermès, we look forward to accompanying Qiong Er in the years ahead, supporting her in building a great company with the ambition to increase the appreciation of the contemporary creativity and traditional culture of China to a growing client base worldwide,” he added.
Shang Xia founderQiong Er said “Within just a decade, Shang Xia has managed to position itself as one of the first Chinese brands on the international luxury stage. This has been achieved thanks to the consistent commitment of Hermes all along. As founder of Shang Xia, Exor joining our initial duo is a thrill as it will enable Shang Xia to pursue our dreams and ambition with more power than ever.”
Founded in 2010, Shang Xia operates stores in Shanghai, where it was founded, and in Beijing, Chengdu, Hangzhou, Shenzhen and Paris. Next year will see new stores open in Singapore and Taipei.
Exor is one of Europe’s largest diversified holding companies and is controlled by the Agnelli family. Its portfolio is principally made up of companies in which Exor is a leading shareholder: Ferrari, Fiat Chrysler Automobiles, PartnerRe, CNH Industrial, Juventus FC, The Economist Group and GEDI Gruppo Editoriale.
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