L Catterton Asia to form JV sportswear
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LVMH-backed private-equity firm L Catterton Asia has launched a JV between two of its portfolio companies, Chinese menswear fashion group GXG, and Australian compression activewear company 2XU.
The strategic partnership will enable both companies to capitalise on the growing fitness and sportswear market in China.
Established in 2007, GXG has a portfolio of four brands – GXG, gxg.jeans, gxg.kids and Yatlas. Its lines are available in more than 2100 stores across China, as well as online through third-party platforms such as Tmall and VIPshop. Its e-commerce GMV is expected to surpass RMB2.5 billion (US$378.5 million) this year, an increase of more than 50 per cent over last year. The company also achieved record sales of RMB485 million in this year’s Tmall 11.11 shopping festival.
Since acquiring a controlling stake in GXG last year, L Catterton Asia has been working with the company’s management team to expand into new categories. It has supported GXG by offering extra collaboration opportunities and helping with global expansion.
“GXG and 2XU are led by seasoned management teams with deep understanding and complementary knowledge of the fashion and retail industries, and we look forward to continuing to work alongside and support both teams,” says L Catterton Asia chairman/managing partner Ravi Thakran.
Founded in 2005, 2XU produces technical athletic wear that is endorsed by elite athletes internationally.
“Since L Catterton Asia’s investment in 2013, 2XU has experienced significant growth and I am grateful for their partnership as we continue to expand into attractive markets around the world,” says 2XU CEO Paul Higgins.
With more than $14 billion of equity capital across six fund strategies in 17 offices globally, L Catterton has a team of more than 140 investment and management professionals. L Catterton Asia (previously L Capital Asia) was launched in 2009 and manages more than $ 1.6 billion across two private equity funds, and more than $2 billion including co-investments. It has offices in Singapore and Mauritius, with a regional advisory presence in Hong Kong, Mumbai and Shanghai.
L Catterton Asia draws on its strategic relationship with Groupe Arnault and LVMH across the investment process. Its investments include Jorya Group, Marubi, Pepe Jeans, Sasseur, Trendy International and YG Entertainment.
Questions & Answers
Q.What is the primary goal of the joint venture between GXG and 2XU?
What is the primary goal of the joint venture between GXG and 2XU?
The strategic partnership aims to allow both GXG and 2XU to benefit from the expanding fitness and sportswear market within China. This collaboration is designed to capitalise on this growing segment.
Q.What contribution does L Catterton Asia make to the companies it invests in?
What contribution does L Catterton Asia make to the companies it invests in?
L Catterton Asia supports companies like GXG by offering extra collaboration opportunities and assisting with global expansion. It also provides management teams with strategic guidance and industry insights.
Q.What financial performance has GXG achieved recently?
What financial performance has GXG achieved recently?
GXG's e-commerce GMV is projected to exceed RMB2.5 billion this year, marking over a 50 per cent increase from last year. The company also achieved record sales of RMB485 million during the Tmall 11.11 shopping festival.
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