Natuzzi S p A : Signed a Partnership to expand retail in APAC
NATUZZI S.P.A. ACCELERATES ITS BRANDED RETAIL EXPANSION IN THE ASIA-PACIFIC REGION BY SIGNING A PARTNERSHIP WITH A LEADING LISTED HOME-FURNITURE PLAYER
Santeramo in Colle, (BA), May 11, 2022 - Natuzzi S.p.A. is one of the most renowned brands in the production and distribution of design and luxury furniture, which is present globally in 110 markets with an extended retail distribution made of 651 monobrand stores in addition to more than 500 Natuzzi galleries. Asia Region is one of the most attractive opportunities for the future growth of Natuzzi.
In China, Natuzzi has been already carrying on a successful strategy to develop its business through a partnership signed in 2018 with Kuka, a leading listed Group in the furniture sector, in which Natuzzi holds a 49% stake. During 2021, the Chinese partnership closed the year with significant growth: revenues of €96.3 million, + 55.2% vs 2020. It now operates 340 mono brand stores of which 84 were added in 2021.
In the rest of APAC, Natuzzi S.p.A. distributes its products in 10 countries, that include South Korea, Australia, Japan, Taiwan, Thailand, Indonesia and Singapore, through 25 monobrand stores.
To accelerate the commercial expansion in the Rest of APAC region, Natuzzi S.p.A. signed a partnership with Truong Thanh Furniture Corporation ("TTF"), a leading listed company in the furniture sector, located in Vietnam. TTF is already an active partner of Natuzzi to produce upholstery in Vietnam for the North American market. TTF in addition plays a key role in the production of furniture for leading furniture names in the USA. Following the finalization of this partnership, TTF acquired a 20% stake in Natuzzi Singapore PTE. LTD ("Natuzzi Singapore"), a controlled subsidiary of Natuzzi S.p.A., for a total cash consideration of $5.4 million already paid in favor of Natuzzi Singapore. As a result, Natuzzi S.p.A. currently owns 74.4% of Natuzzi Singapore, whereas the other minority shareholder, Mr. Richard Tan, owns 5.6% of the share capital. In addition, Natuzzi S.p.A. maintains the majority of the board of Natuzzi Singapore.
The partnership in Natuzzi Singapore will aim at fostering the commercial development both in the branded retail and in the contract business, as well as strengthening its industrial platform.
Mr. Mai Huu Tin, Executive Chairman of TTF, commented: "Natuzzi S.p.A. is a partner with whom TTF has already started a very important journey in the production of upholstery. We are convinced now more than ever that there is enormous potential in joining forces to further develop our industrial presence in the region but, above all, the retail-branded commercial operations."
Antonio Achille, CEO of the Natuzzi Group, commented: "I confirm my satisfaction for the joining of Mr. Mai Huu Tin, Executive Chairman of TTF, in this long-term project which has been started by our Chairman and Founder Pasquale Natuzzi. Mr. Tin and I are aligned in sharing the vision and the potential of the Natuzzi products in the Rest-of- APAC. With this joint venture we have reinforced our presence in the region to develop the distribution of the Natuzzi brands and exploit the potential in the contract segment, a very interesting opportunity in the Region. The JV will also explore alternative solutions to increase our production capabilities in Vietnam, so to become the Group's industrial hub covering the unbranded part of the business of our North American operations going forward."
About Natuzzi S.p.A.
Founded in 1959 by Pasquale Natuzzi, Natuzzi S.p.A. ("Natuzzi" and, together with its subsidiaries, the "Group") is one of the most renowned brands in the production and distribution of design and luxury furniture. With a global retail network of 651 mono-brand stores and 563 galleries as of December 31, 2021, Natuzzi distributes its collections worldwide. Natuzzi products embed the finest spirit of Italian design and the unique craftmanship details of the "Made in Italy", where a predominant part of its production takes place. Natuzzi has been listed on the New York Stock Exchange since May 13, 1993. Always committed to social responsibility and environmental sustainability, Natuzzi S.p.A. is ISO 9001 and 14001 certified (Quality and Environment), ISO 45001 certified (Safety on the Workplace) and FSC® certified (Forest Stewardship Council).