Hong Kong-based Fung Retailing Ltd. has taken a 70 percent stake in Suhyang Networks, a South Korean children’s apparel maker.
The acquisition by Fung Retailing was completed with funds managed by private equity firm AEA Investors. The dollar amount for the acquisition stake wasn’t disclosed, but the price tag is reportedly 200 billion Korean won, or $188 million at current exchange.
Fung Retailing is a privately held company that is a wholly owned subsidiary of Hong Kong-based Fung Group. Fung Group is privately held by Fung Holdings (1937) Ltd., which is a substantial shareholder of Li & Fung Ltd., the trading company that is publicly listed on the Hong Kong Stock Exchange.
Suhyang operates more than 210 shops-in-shop in department stores in Korea, in addition to nine outlet stores and three multibrand shops, for its baby and children’s brands Minkmui, Bluedog, R.Robot, Denim in the Box and Lulabee.
According to Andrew Postal, managing partner of MMG, who worked on the deal representing Suhyang, Suhyang’s chief executive officer, Jayson Suhr, will continue at the company, as will his entire management team.
The acquisition is in line with Fung Retailing’s plans to expand its portfolio of baby and children brands and work with local partners to leverage its expertise to include the introduction of international and European brands into Korea. The plan is also for Suhyang to expand its brands overseas. Sales at Fung Retailing in 2011 were more than $1 billion via its presence from Greater China to Korea, Singapore, Malaysia, Thailand, Indonesia and other Southeast Asia countries that have a combined retail network of more than 2,900 stores.
Postal, who is spearheading MMG’s investment banking presence in Korea, expects increased activity in that country on the mergers and acquisitions front.
“South Korea is interesting. It is the cultural capital of Asia...has a sophisticated retail environment [and] upscale consumers like Japan did in the 1980s,” the investment banker said.
Unlike deals that have the potential to be riskier in China unless one is partnering with someone on the ground, Korea has “real transparency in terms of its [accounting], real branding and significant capabilities. It’s an attractive market [with] well-funded companies, and the country is a true open marketplace,” Postal added.
Andreas Kurz, president and owner of fashion consultancy firm Akari Enterprises, said Korea is a dynamic market in Asia given that the firms “have cash and want to buy brands.” He explained that while global firms need to keep an eye on China, that’s still a longer-term play. Korea, with its better-developed infrastructure and business base, can provide immediate accretion to a firm’s bottom line.
There'll be no rest for those headed to Europe for men's, as Paris just closed the gap with Milan. According to a provisional calendar released by the Chambre Syndicale, Paris Men's Week will now open a day earlier on January 16. See new highlights on the official lineup on WWD.com. #wwdnews #wwdfashion (📷: @kukukuba)
BREAKING: Jonathan Saunders is leaving @DVF. The designer has resigned from his position as chief creative officer of Diane von Furstenberg, the company said in a statement on Friday. At the time of his hire, von Furstenberg said Saunders’ arrival symbolized and facilitated her stepping back from the day-to-day duties that occupy the work of a full-time creative director. The British designer joined DVF in May 2016 and was in charge of all product categories. #wwdnews
For @versace_official’s spring ad campaign, the brand emphasized the archival prints from the spring tribute collection dedicated to the late Gianni Versace. Closing out the show were five of Gianni’s favorite models: Cindy, Naomi, Carla, Helena, and Claudia. Bowing on December 18, the new campaign is yet another tribute to supermodel-dom as the images by Steven Meisel are fronted by @iamnaomicampbell, @cturlington, @gisele and more. #wwdfashion
Four-time Oscar-nominated actress Annette Bening has been waiting 20 years to play Gloria Graham in "Film Stars Don't Die in Liverpool," which will be released on December 29. The movie about Graham – a Hollywood star known for her controversial relationship with a younger Englishman named Peter Turner – is based off a memoir Turned wrote. "She felt vulnerable to him, because she loved him, she really did love him. And anyone that we really truly are in love with, we re vulnerable to in a very deep way," said Bening. Read our full interview with the modern icon of an actress on WWD.com. #wwdeye (📷: @ninebagatelles; Styled by @cristinaehrlich)
The crisp white button down: a staple that can be dressed up or down and accessorized throughout the decades. Here, on a Art Basel-goer in 2017 on the left and on the iconic Audrey Hepburn in “Roman Holiday” in 1953 on the right. #tbt #wwdfashion (📷: Andrew Morales)
Known for her work with @victoriassecret, 25-year-old model @georgiafowler is raising her profile in Hollywood. Fowler stars in @vincecamuto’s holiday campaign, which launched in partnership with “Pitch Perfect 3.” “Almost every shoot with Vince Camuto, I’ve had to face a fear…It was definitely a challenge. I’m so grateful for it, though. I’ve always wanted to be a pop star, so that was the perfect chance,” Fowler said. Head to WWD.com to read about Fowler’s experience modeling, including at the #VSFashionShow, and her relationship with Nick Jonas. #wwdeye (📷: @jilliansollazzo)
EXCLUSIVE: Huda Kattan just became the first beauty influencer to land a major beauty deal. Kattan's business, @hudabeauty, has received a minority investment from private equity firm TSG Consumer Partners. The brand, which industry sources say is on track to do $200 million in retail sales for 2017, will receive support on product, retail and geographic expansion through the deal. Get all the details on the deal and read @_a_collins' interview with Kattan on WWD.com. Link in bio. (📷: @jgreenery) #wwdbeauty #wwdnews
Peruvian model @juanaburga_official – who is known for walking the runways of @rodarte, @viviennewestwood and @torybuch – is making the move to the big screen with drama “Los Últimos.” The film premiered in Argentina in November and arrives in the U.S. and Europe in 2018. On making the switch from modeling to acting, Burga told WWD: “It’s a completely different thing – a lot of people think it’s similar or try to connect things, especially like getting used to the camera or being looked at all the time or playing these different characrers, but film is a completely different story.” #wwdeye (📷: @jgreenery)
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)