Shangdong Ruyi bid going ahead

A plan by Chinese textile group Shandong Ruyi to take over French fashion group SMCP is apparently going ahead.

The deal was on the table in January, but reportedly collapsed early this month with its parent, private equity firm KKR, filing documents to launch an initial public offering in Paris.

Now it is going ahead again, according to a Reuters report, with documents waiting to be signed. The price tag is said to be 1.3 billion euros ($1.47 billion).

SMCP, with its brands Claudie Pierlot, Maje and Sandro, has more than 1000 stores in 34 countries, including China, Hong Kong, Indonesia, Korea, Macau, Singapore, Taiwan and Thailand.

“We are very keen on pursuing our organic growth by continuing to develop high-quality, on-trend collections, accelerating in digital, accessories and in menswear with Sandro Homme,” said CEO Daniel Lalonde on SMCP’s website, introducing its contemplated IPO.

“We recorded €675 million [US$764.7 million] net sales in 2015, averaging a 26 per cent increase each year since 2012, and very good results last year with a 33 per cent increase in net sales.

“We will continue a targeted international expansion in the key markets where we already experience significant success, notably in greater China, the US, UK, Italy and Spain.”

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