Natuzzi S.p.A. Signs a Joint Venture Agreement with Jason Furniture (Hangzhou) Co., Ltd. (“Kuka”)
March 22 2018 - 7:31AM
Business Wire
Natuzzi S.p.A. (NYSE:NTZ) (the “Company”) announced that today
it has signed a joint venture agreement (the “Joint Venture
Agreement”) with Kuka, under which the Company’s wholly-owned
Chinese subsidiary, Natuzzi Trading (Shanghai) Co., Ltd. (the
“Joint Venture”) would become a joint venture. The Joint Venture
Agreement is aimed at expanding the Company’s retail network in
China Mainland, Hong Kong and Macau (the “Territory”). Today, the
Company, the Joint Venture and Kuka have also entered into an
Agreement for the Sale and Purchase and Subscription of Shares In
Natuzzi Trading (Shanghai) Co, Ltd. (the “Share Purchase Agreement”
and, together with the Joint Venture Agreement, the
“Agreements”).
The Agreements were signed further to the execution of a
preliminary agreement on January 9, 2018. Under the Agreements, the
Company and Kuka will own, respectively, a 49% and a 51% stake in
the Joint Venture. The Joint Venture will distribute Natuzzi Italia
and Natuzzi Editions branded products through a network of
single-brand directly operated stores and franchised operated
stores in the Territory, as well as through online stores.
Kuka will invest a total of Euro 65 million of which (a) Euro 35
million will be contributed to the Joint Venture for the
subscription of a capital increase of U.S.$ 567,869 in the Joint
Venture, and (b) Euro 30 million will be paid to the Company as
consideration for the transfer of U.S.$ 486,744 of registered
capital interest from the Company to Kuka.
Pursuant to the Agreements, the Joint Venture will be granted
the perpetual and exclusive distribution license for the Natuzzi
Italia, Natuzzi Editions and other relevant trademarks by the
Company for a consideration of Euro 15 million. With respect to
these trademarks, the Company will retain the right to use the
Natuzzi Italia, Natuzzi Editions and other relevant trademarks for
all of the Company’s existing manufacturing activities, including
those carried out in the Territory and for the distribution of the
Company’s products in countries other than the Territory.
The completion of the transaction contemplated by the Agreements
(the “Transaction”) is subject to obtaining any applicable
authorizations, regulatory filings and approvals (including
approval by Kuka’s shareholders of certain agreements entered into
by the Company, its subsidiary and the Joint Venture in connection
with the Transaction), as well as the satisfaction of other
customary closing conditions. Assuming these conditions are met, it
is expected that the closing will occur by August 22, 2018.
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CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING
STATEMENTS
Certain statements set forth in this press release constitute
forward-looking statements within the meaning of the safe harbor
provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements involve risks and uncertainties that
could cause the Company’s actual results to differ materially from
those stated or implied by such forward-looking statements. More
information about the potential factors that could affect the
Company’s business and financial results is included in the
Company’s filings with the Securities and Exchange Commission,
including the Company’s Annual Report on Form 20-F for the year
ended December 31, 2016. The Company undertakes no obligation to
update any of the forward-looking statements after the date of this
press release.
------------------------------
About Natuzzi S.p.A.
Founded in 1959 by Pasquale Natuzzi, Natuzzi S.p.A. is Italy’s
largest furniture house and one of the most important global player
in the furniture industry with an extensive manufacturing footprint
and a global retail network. Natuzzi S.p.A. is the Italian
lifestyle best-known brand in the furnishings sector worldwide
(Brand Awareness Monitoring Report - Ipsos 2016) and has been
listed on the New York Stock Exchange since 13 May 1993. Always
committed to social responsibility and environmental
sustainability, Natuzzi S.p.A. is ISO 9001 and 14001 certified
(Quality and Environment), OHSAS 18001 certified (Safety on the
Workplace) and FSC® certified (Forest Stewardship Council).
------------------------------
About Kuka
Jason Furniture (Hangzhou) Co., Ltd. is originated from a
carpenter workshop founded in 1982. Now it is one of the largest
upholstery furniture manufacturers and retailers in China. The
company is mainly engaged in research, design, production and sales
of the middle and middle-high upholstery furniture used in living
room, dining room and bedroom. It has three major manufacturing
bases in China, more than 3000 mono-brand stores in China and
overseas, providing the high-quality products and services for the
global families. The company was officially listed on the Shanghai
stock exchange on October 14, 2016.
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NATUZZIINVESTOR RELATIONSPiero Direnzo, tel.
+39.080.8820.812(IR
Manager)pdirenzo@natuzzi.comorNATUZZICORPORATE
COMMUNICATIONVito Basile, tel. +39.080.8820.676(Press
Office)vbasile@natuzzi.com
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