SMCP Taking over men’s luxury brand De Fursac
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Chinese-controlled affordable luxury fashion group SMCP has agreed to buy French luxury menswear label De Fursac.
The deal – the value of which was not disclosed – gives SMCP an entry into the menswear category and will complement its existing labels Sandro, Maje and Claudie Pierlot.
In a regulatory filing, Shandong Ruyi said the deal would be financed from debt but would increase earnings-per-share immediately.
Last year, De Fursac’s sales reached €41.4 million last year and it achieved like-for-like sales growth of 5.4 percent.
SMCP CEO Daniel Lalonde said De Fursac gives his company a unique opportunity to accelerate its strategy by tapping into a new segment in the fast-growing men’s accessible luxury market.
“De Fursac is an outstanding brand, poised for growth through international expansion, with the support of our expertise.”
Questions & Answers
Q.How will SMCP finance the acquisition of De Fursac?
How will SMCP finance the acquisition of De Fursac?
According to a regulatory filing by Shandong Ruyi, the deal for De Fursac will be financed from debt. This financing strategy is expected to increase SMCP's earnings-per-share immediately upon completion.
Q.What was De Fursac's financial performance last year?
What was De Fursac's financial performance last year?
Last year, the French luxury menswear label De Fursac reported total sales of €41.4 million. The company also achieved a like-for-like sales growth of 5.4 percent during the same period, indicating strong performance.
Q.What strategic advantage does De Fursac offer SMCP?
What strategic advantage does De Fursac offer SMCP?
De Fursac provides SMCP with an entry into the menswear category, complementing its existing labels like Sandro. CEO Daniel Lalonde sees it as an opportunity to accelerate strategy by entering the fast-growing men's accessible luxury market.
Q.Which company currently controls SMCP?
Which company currently controls SMCP?
SMCP, described as an affordable luxury fashion group, is controlled by a Chinese entity. The article specifically mentions Shandong Ruyi in relation to the regulatory filing about the deal's financing.