Sanlorenzo S.p.a. Acquires Nautor’s Swan: A New Era in the Luxury Yacht Industry

In a landmark move that has sent ripples through the luxury yacht industry, Sanlorenzo S.p.a., the renowned Italian yacht manufacturer, has finalized an agreement to acquire Nautor’s Swan, a prestigious Finnish sailboat builder. The deal, which values Nautor’s Swan at an equity value of 80.9 million euros and an enterprise value of 90 million euros, marks a significant consolidation in the high-end nautical market. This acquisition will see Sanlorenzo take full ownership of Nautor’s Swan, including its subsidiaries spread across seven different countries, thereby expanding its global footprint and enhancing its product portfolio.

Nautor’s Swan, founded in 1966 in Finland, has been under the stewardship of Leonardo Ferragamo since 1998. Over the past two decades, Ferragamo has worked tirelessly to elevate the brand’s image, transforming it into an internationally recognized name synonymous with quality, elegance, and reliability. His efforts have not only preserved the rich heritage of Nautor’s Swan but also positioned it as a leader in the luxury sailboat market. The decision to sell the company to Sanlorenzo was driven by Ferragamo’s desire to ensure the brand’s perpetuity by entrusting it to a leading luxury yachting group.

Sanlorenzo, on the other hand, is a top shipyard in Italy, known for its bespoke yachts that cater to the specific needs and preferences of its affluent clientele. The company has made significant strides in recent years, collaborating with famous designers like Patricia Urquiola to create luxury floating homes that are as aesthetically pleasing as they are functional. The surge in demand for luxury vessels has seen Sanlorenzo’s sales soar, particularly in 2023, making this acquisition a strategic move to capitalize on the growing market.

The terms of the acquisition involve an initial payment for 60 percent of the shares, equivalent to an equity value of 80.9 million euros, with the remaining 40 percent to be paid by April 30, 2028. The final payment will be determined by the higher of two values: the initial agreed price or a calculation based on Nautor’s Swan’s 2027 earnings. This structured payment plan ensures that the transaction is mutually beneficial and allows for the seamless integration of Nautor’s Swan into Sanlorenzo’s operations.

Upon completion of the acquisition, Nautor’s Swan will continue to be led by its current CEO, Giovanni Pomati, alongside Sanlorenzo’s CEO, Massimo Perotti. Leonardo Ferragamo will retain his role as chairman of Nautor’s Swan Group, ensuring continuity and leveraging his extensive experience to guide the company through this transition. This leadership structure is designed to maintain the brand’s identity while benefiting from the synergies created by the merger.

One of the key aspects of this acquisition is the focus on sustainability. Both Sanlorenzo and Nautor’s Swan have demonstrated a commitment to developing environmentally friendly technologies and practices. Sanlorenzo, a pioneer in sustainable yachting, aims to leverage Nautor’s Swan’s existing sustainable initiatives to further enhance its green credentials. This alignment of values is expected to drive innovation and set new standards in the luxury yacht industry.

A comprehensive business plan has been developed to maximize the potential of this acquisition. The plan focuses on enhancing product development, leveraging technological advancements, optimizing production processes, and expanding commercial synergies. By combining their strengths, Sanlorenzo and Nautor’s Swan aim to create a unique nautical pole that offers unparalleled products and services to their discerning clientele.

The financial implications of this acquisition are significant. Nautor’s Swan generated net revenues that accounted for approximately 10 percent of Sanlorenzo’s total revenues in fiscal year 2023. This addition is expected to contribute substantially to Sanlorenzo’s overall financial performance, driving growth and profitability. The valuation of Nautor’s Swan took into account its expected EBITDA, reflecting the company’s strong financial health and future growth prospects.

The acquisition was executed with meticulous planning and strategic foresight. Sanlorenzo paid the cash portion of the price, amounting to €32,354,734.71, and transferred €16,177,367.36 to be released with the capital increase reserved for Sawa. The share price for the payment in shares was calculated at €38.4727, resulting in the issuance of 420,489 shares for Sawa. This structured payment approach ensures financial stability and aligns the interests of all stakeholders.

Sanlorenzo’s share price for the payment in shares was based on the average stock exchange prices in the previous 30 calendar days, reflecting the company’s robust market performance. The first closing of the deal has been executed, marking a significant milestone in this acquisition journey. The total value of the acquisition underscores its importance and the strategic benefits it brings to both companies.

The partnership between Sanlorenzo and Nautor’s Swan is seen as a strategic move that will yield long-term benefits. By combining their expertise and resources, the two companies are well-positioned to lead the luxury yacht market. This collaboration is expected to drive innovation, enhance product offerings, and expand their global reach, setting new benchmarks in the industry.

In conclusion, the acquisition of Nautor’s Swan by Sanlorenzo represents a significant milestone in the luxury yacht industry. It brings together two iconic brands with a shared vision of excellence, quality, and sustainability. This strategic move is expected to drive growth, enhance product development, and create new opportunities in the high-end nautical market. As the integration process unfolds, the industry will be watching closely to see how this partnership shapes the future of luxury yachting.