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.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)