Private-equity rivals bid for Hong Kong tag-maker SML Group
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Private-equity businesses are among firms preparing bids to buy Hong Kong garment-label maker SML Group.
The companies – Bain Capital, Boyu Capital and MBK Partners – are believed to have already made formal offers for the firm, according to those familiar with the transaction. Although details of the bids remain tightly held, it is expected that the sale could be worth US$400–500 million.
SML Group has been working with Citigroup since at least January in its attempts to attract a buyer for the business. The company makes hang tags, price tickets, and woven and printed labels, as well as buttons and zippers.
Founded in a warehouse office in 1985, the company has since expanded both organically and via acquisitions.
The firm began in a warehouse in Hong Kong more than 30 years ago and now boasts factories or offices in 30 countries, including Indonesia, Spain, the US, and Mexico.
None of the parties involved in the potential transaction have thus far not issued comments to the media.
Questions & Answers
Q.Which companies are reportedly bidding to acquire SML Group?
Which companies are reportedly bidding to acquire SML Group?
Bain Capital, Boyu Capital, and MBK Partners are the private-equity businesses believed to have already submitted formal offers for the Hong Kong garment-label maker. Details of their bids are currently kept private.
Q.What is the estimated value of the potential sale of SML Group?
What is the estimated value of the potential sale of SML Group?
Although the exact figures are not publicly known, it is anticipated that the sale of SML Group could be valued somewhere between US$400 million and US$500 million, according to those familiar with the transaction.
Q.What kind of products does SML Group manufacture?
What kind of products does SML Group manufacture?
SML Group manufactures a variety of garment accessories. These include hang tags, price tickets, and both woven and printed labels. The company also produces buttons and zippers for the fashion industry.
Q.How large is SML Group's global presence?
How large is SML Group's global presence?
Founded in a Hong Kong warehouse in 1985, SML Group has significantly expanded its operations. The company now operates with factories or offices established in 30 countries worldwide, including Spain, the US, and Indonesia.
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