20 May 2018
BDA advises Etam on sale of Chinese RTW operations to a Hong Kong investor
Divested Chinese RTW business to a Hong Kong-based investor
BDA Partners is pleased to announce that its client, Etam Group, has agreed to sell its Chinese ready-to-wear (“RTW”) operations to a Hong Kong-based investor introduced by the founder and CEO of Jaoboo Fashion Group International, Mr. Jinguo Zhou. As a result of the transaction, Mr. Zhou, a leading retail expert in China, will take charge of Etam’s RTW activities in China with immediate effect. Financial terms were not disclosed.
BDA was the exclusive financial advisor to Etam Group on the transaction. Sidley Austin was the legal advisor to Etam Group.
Headquartered in Shanghai, Etam’s China RTW operation owns and operates four well-recognized womenswear brands and boasts a well-established, nationwide, omnichannel distribution network with 1,600 points of sales across 300 cities, and a presence on the leading Chinese e-commerce platforms.
Laurent Milchior, CEO of Etam Group, commented: “As we enter a new stage of development, we believe Mr. Zhou is ideally positioned to take Etam’s RTW business in China to the next level. With Mr. Zhou’s experience, Etam’s RTW brands can continue to grow and reach more customers across China.”
Jinguo Zhou, Founder and CEO of Jaoboo, added: “The Etam RTW brands are well known to consumers across China and I am excited to have reached an agreement with Etam Group to take the brands and business forward. With Etam’s strong customer base, its brand heritage and our expertise in China, I am confident we have a bright future ahead of us.”
Karen Cheung, Head of Consumer and Luxury, Asia, BDA, said: “We’re proud to advise on another highly-visible consumer transaction involving some of the longest-standing and best-recognized foreign RTW brands in the Chinese market. This transaction continues the strong momentum for our Consumer and Luxury practice. It demonstrates the depth of our relationships and experience in Asian retail M&A.”
"We’re thrilled to have found an enthusiastic new partner to build on the strong foundations laid over the past 25 years by Etam. This transaction underlines BDA’s expertise in delivering positive results for multinationals in Chinese corporate carve-outs."
Founded in 1916, the Etam Group is a leading global apparel company, headquartered in Paris, with 3,000 stores in 64 countries. The Group designs and distributes lingerie, beauty, women’s ready-to-wear and accessories. The Group is the leader in France and amongst the international leaders in lingerie with three brands; Etam, Undiz and Livy, as well as a RTW player with the Etam and 1.2.3 brands. www.etam.
About BDA Partners
BDA Partners is a leader in cross-border investment banking involving Asia. BDA advises on M&A and capital raising. BDA has been consistently owned and managed by the same team since 1996. BDA has a track record of providing independent advice to blue-chip corporate and financial sponsor clients from North America, Europe, and Asia. BDA is headquartered in New York with offices in London, Dubai, Mumbai, Ho Chi Minh City, Singapore, Hong Kong, Shanghai, Seoul, and Tokyo. BDA was named Investment Bank of the Year 2017 by both The M&A Advisor and ACG New York. BDA formed partnerships with William Blair & Company in 2011 and Development Bank of Japan in 2017. www.bdapartners.com
US securities transactions are performed by BDA Partners’ affiliate, BDA Advisors Inc, a broker-dealer registered with the Securities and Exchange Commission (SEC). BDA Advisors Inc. is a member of the Financial Industry Regulatory Authority (FINRA) and SIPC. In the UK, BDA Partners is authorised and regulated by the Financial Conduct Authority (FCA). In Hong Kong, BDA Partners (HK) Ltd is licensed and regulated by the Securities & Futures Commission (SFC) to conduct Type 1 and Type 4 regulated activities to professional investors.
Agreed to divest a 70% stake to SCPE
Divested Alliance Cosmetics Group to Mandom
Investcorp invested up to $250m in China Everbright New Economy Fund
Divested Leyou to Warburg Pincus
Divested Gourmet Noodle House to GreenTree Inns
Growth capital raise
Divested Harrys of London to Charles Cohen
Acquired Chinese food ingredients company, Tianning Flavours
Merged with Fitness First Asia, led by Navis Capital
Raised growth capital
Divested Happy Socks to Palamon
Divested Theodore Alexander to Creative Home Furniture
Divested Clark's Botanicals to Glansaol
Raised growth capital from Standard Chartered Private Equity
Divested King Koil China to Advent International
Divested CHS Ningbo Protein Foods to Shandong Wonderful
Divested lighting business, Halonix Technologies
Divested Chinese dessert restaurant chain
Sold majority stake in J. Mendel
Sold stake in electronics business to Standard Chartered Private Equity