Tag: kuka

Italian furniture brand Natuzzi and China’s Kuka furniture company have agreed to make the company’s wholly owned Chinese subsidiary Natuzzi Trading (Shanghai) a joint venture.

The JV agreement is aimed at expanding the company’s retail network in Mainland China, Hong Kong and Macau. The company, the JV and Kuka have also entered into an agreement for the sale and purchase and subscription of shares In Natuzzi Trading (Shanghai).

The agreements follow the execution of a preliminary agreement last month. Under the agreements, Natuzzi and Kuka will own, respectively, a 49 and a 51 per cent stake in the JV, which will distribute Natuzzi Italia and Natuzzi Editions branded products through a network of single-brand directly run stores and franchised stores in China, Hong Kong and Macau, as well as through online stores.

Kuka will invest a total of €65 million (US$80 million), of which €35 million will be contributed to the JV for the subscription of a capital increase of US$567,869, and €30 million will be paid to the company as consideration for the transfer of US$486,744 of registered capital interest from the company to Kuka.

The JV will be granted the perpetual and exclusive distribution licence for the Natuzzi Italia, Natuzzi Editions and other relevant trademarks for a consideration of €15 million.

The transaction is subject to applicable authorisations, regulatory filings and approvals. Assuming these conditions are met, it is expected the closing will occur by August 22.

Natuzzi has signed a preliminary agreement to form a JV with China’s Kuka furniture company with the aim of expanding the Italian brand’s retail network in Greater China.

“We have known Kuka for many years and have always admired its growth-oriented entrepreneurial spirit and approach,” says Natuzzi chairman/CEO Pasquale Natuzzi. “This partnership will enable Natuzzi and Kuka to become the leading player in the emerging and growing market for branded luxury home furnishings in Greater China.”

Kuka chairman Jiangsheng Gu says Natuzzi is the right product and brand for the new growth in the Chinese home-furnishing market.

Subject to certain terms and conditions in the preliminary agreement, and to applicable authorisations, it is expected Natuzzi will contribute exclusive perpetual distribution rights for the Natuzzi Italia and Natuzzi Editions trademarks into a Chinese corporate entity, and that Kuka will invest €65 million (US$77.5 million) to sustain the expansion of the Natuzzi retail network in Greater China, particularly Mainland China, Hong Kong and Macao.

Of Kuku’s investment, €15 million is in exchange for Natuzzi’s trademark contribution. Natuzzi and Kuka will own 49 and 51 per cent respectively of the entity.

The preliminary agreement also envisages Natuzzi will contribute its existing stores and commercial organisation in China. Further, the venture will employ Natuzzi’s retail management team.

It is also expected the JV will take over existing distribution agreements related to the Natuzzi network of franchised stores.

If the parties fail to reach a final agreement by March 31, the preliminary agreement will be voided.