LONDON, UK / ACCESSWIRE / January 11, 2018 / Active-Investors.com has just released a free research report on Natuzzi S.p.A. (NYSE: NTZ). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=NTZ as the Company's latest news hit the wire. On January 09, 2018, the Company announced that it has signed a preliminary agreement with Jason Furniture (Hangzhou) Co., Ltd (Kuka) to form a joint venture (JV) to expand the Company's retail network in Greater China. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Commenting on the signing of the preliminary agreement with Kuka, Pasquale Natuzzi, Chairman and CEO of Natuzzi S.p.A., said:
"We have known Kuka for many years and have always admired their growth oriented entrepreneurial spirit and approach. This historic 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."
Jiangsheng Gu, Chairman of Kuka, stated:
"We have long admired the position and strength that Natuzzi has achieved globally. This is the right product and brand for the new growth we see in the Chinese home furnishing market. By combining Natuzzi's unparalleled position as the top brand in home furnishings with Kuka's strong position in China, we as partners will be a force with which to be reckoned in the years to come."
Details of the agreement
As per the terms of the preliminary agreement Natuzzi and Kuka will form a JV Company which will be a Chinese corporate entity. Natuzzi will provide exclusive distribution rights to this Chinese entity and allow the use of its Natuzzi Italia and Natuzzi Editions trademarks. Kuka plans to invest €65 million in this JV Company for its day-to-day operations. The JV Company will utilize the capital investment from Kuka for expanding Natuzzi's retail network in Greater China. Out of Kuka's total investment of €65 million, €15 million is earmarked as payments towards the rights to use Natuzzi Italia and Natuzzi Editions trademarks. As per the terms of the agreement, Kuka will be able to use these trademarks across Greater China, particularly Mainland China, Hong Kong SAR and Macao SAR. Kuka will own the controlling interest of 51% in this Chinese JV Company and balance 49% interest will be owned by Natuzzi.
Natuzzi's role in the JV is to provide retail and store management expertise to the stores covered under the JV Company. For this purpose, Natuzzi's retail management team will be retained by the JV Company. The agreement envisions that the JV Company will manage the existing distribution agreements related to the Natuzzi network of franchised stores in Greater China. The terms of the agreement also state that Natuzzi will continue to hold all the rights to use the Natuzzi Italia and Natuzzi Editions trademarks for all its manufacturing activities, including in Greater China, and distribution in countries other than Greater China. The agreement also mentions that Natuzzi will provide a certain discount for products supplied to the JV Company.
Both companies plan to sign a final partnership agreement soon and are in the process of finalisation of requisite documentation. The partnership agreement is subject to getting the approvals from applicable regulatory bodies. If both companies are unable to reach a final agreement by March 31, 2018, the current preliminary agreement will be considered as void.
About Natuzzi S.p.A.
Santeramo in Colle, Bari, Italy-based Natuzzi was founded by Pasquale Natuzzi in 1959 and is Italy's largest furniture house and a leading global player in the furniture industry. Natuzzi is the best-known lifestyle brand in the global furniture industry and has two product lines - Natuzzi Italia and Natuzzi Editions. It has eight manufacturing plants across Italy, China, Brazil, and Romania, eleven commercial offices and an extensive global retail network. It exports its innovative products to 123 countries covering five continents.
Natuzzi's turnover for FY16 was €457.2 million.
About Jason Furniture (Hangzhou) Co., Ltd
Hangzhou, China-based Kuka is a leading brand in China home furnishing industry. It researches, develops, produces, and sells home appliances for the living room and bedroom. The Company's portfolio of products includes sofas, beds, and accents, as well as dining chairs, mattresses, ancillary products, decorative products, etc. The Company sells its products in 3,000 branded shops located across 120 countries and regions. In China is has four major production facilities, out of which its Xiasha plant is the largest plant with an area of 130,000 square meters and a production capacity of 3200 containers of furniture in a month.
Stock Performance Snapshot
January 10, 2018 - At Wednesday's closing bell, Natuzzi S.p.A.'s stock declined 2.20%, ending the trading session at $1.78.
Volume traded for the day: 28.30 thousand shares, which was above the 3-month average volume of 15.98 thousand shares.
Stock performance in the last month – up 14.84%; and year-to-date - up 11.25%
After yesterday's close, Natuzzi S.p.A.'s market cap was at $92.28 million.
The stock is part of the Consumer Goods sector, categorized under the Home Furnishings & Fixtures industry.
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