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, China and Macau, China (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.

(Source:.businesswire.com)