SMCP group appeals to Lion Capital and Ruyi

By

Anaïs Lerévérend

Published
Jan 22, 2016

Since last year, the rumour of a forthcoming divestment of the SMCP group by the KKR investment fund has become increasingly insistent. After the US fund instructed several banks to evaluate the opportunity of selling its stock in SMCP, Bloomberg Business has now reported that two offers are already on the table.

According to the US financial news agency, British investment fund Lion Capital has reportedly submitted an offer for the acquisition of KKR's 65% share (the rest of the capital still belongs to the long-standing directors of the Maje and Sandro brands).

Lion Capital is specialised in personal goods, and already holds stock in American Apparel, Jimmy Choo, All Saints, La Senza and John Varvatos, as well as in Hema, Picard and Alain Afflelou.

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The British fund however is not the only player jostling for the position. Bloomberg also mentioned an offer coming from the Chinese group Ruyi. The latter is a vast textile conglomerate, active in manufacturing and distribution, and reportedly generating a revenue in excess of €4.2 billion.

Whatever the identity of its share's buyer, KKR is set to value the SMCP group, with its one thousand stores worldwide, at approximately €1 billion for the purposes of the sale.