Edmond de Rothschild Corporate Finance has advised the founders of SMCP Group on the sale of their share capital to Shandong Ruyi Technology Group

Corporate Finance - 4/1/2016

The American investment fund, KKR, signed an exclusivity agreement with Shandong Ruyi Technology Group, a Chinese textile manufacturer, for the acquisition of a majority stake in the capital of SMCP.

3 years after it acquired 70% of the capital of the French fashion brands Sandro, Maje and Claudie Pierlot (SMCP Group), the American investment fund, KKR, signed an exclusivity agreement with Shandong Ruyi Technology Group, a Chinese textile manufacturer, for the acquisition of a majority stake in the capital of SMCP. The latter's founders, who currently own a 20% stake , will retain a minority shareholding alongside Shandong Ruyi and KKR.

Edmond de Rothschild Corporate Finance has advised the founders of SMCP Group, Evelyne Chétrite, Judith Milgrom and Ylan Chétrite, on the sale of their share capital and their reinvestment alongside Shandong Ruyi and KKR.

The SMCP Group is a leader in the affordable luxury sector thanks to its three Parisian brands and their unique DNA. The Group doubled its revenues over the last 3 years with the opening of about 120 outlets a year. In 2015, sales increased by 33%, up to 675 million euros, earned mainly from international activities in 33 countries with a total of 1,118 outlets around the world.

Shandong Ruyi Technology Group was founded in 1972. It is one of the largest textile groups in China and ranks within the top 100 Chinese multinational companies. The group is fully integrated, from the cultivation of textile raw materials to distribution in 3,000 outlets located on several continents.

This transaction will enable the SMCP Group to further its development on the international scene thanks to Shandong Ruyi Group's know-how and its knowledge of the Asian market. The long-term ambition is to become the global leading player in the affordable luxury market, all the while preserving the DNA and unique identity of the SMCP brands.