PARIS — Chinese textile concern Shandong Ruyi Group has finalized its purchase of a controlling interest in SMCP Group — the parent of fashion chains Sandro, Maje and Claudie Pierlot – from private equity giant Kohlberg Kravis Roberts & Co., the parties said Tuesday.
The closure of the deal, which was first revealed in March, comes against a backdrop of strong growth for the brands, which reported a 19.2 percent gain in revenues in the first half, powered by “explosive” growth in China, resilience in France and a promising start in leather goods and shoes.
Shandong Ruyi Group has said it plans to ramp up global expansion of Sandro, Maje and Claudie Pierlot, particularly in Asia. SMCP’s founders and management are reinvesting in the firm as minority shareholders, while KKR is also retaining a minority stake in the group.
Financial terms were not disclosed but the deal has been estimated at 1.3 billion euros, or $1.45 billion, including debt, giving new standing to Shandong Ruyi, relatively unknown to several U.S.-based fashion dealmakers. It’s the latest in a wave of acquisitions by deep-pocketed Chinese firms.
Shandong said it would retain SMCP’s design and creative teams in Paris along with “its current strategy and organizational structure, while benefiting from the global retailing expertise of its new shareholder.”
Parisians Evelyne Chétrite and Judith Milgrom founded Sandro and Maje in 1984 and 1998, respectively, while Claudie Pierlot set up her business in 1984.
“This is an important milestone for Shandong Ruyi Group in our continued endeavor to become a leader in the fully integrated textiles and fashion business both in China and globally,” said Shandong chairman Yafu Qiu.
Daniel Lalonde, president and chief executive officer of SMCP, added: “With Shandong Ruyi Group’s support, we will pursue our goal to become a global leader in accessible luxury through organic growth and expansion in Europe, North America and Asia by leveraging our brands’ global desirability, our unique business model and our team’s talent.”