Levi's denim provider JD United Holdings changes hands

Hong Kong-based EmergeVest has exited its investment with Chinese apparel supplier JD United Holdings Limited (JDU). The private equity firm has sold its stake to Taiwan-listed textile Roo Hsing Co for 500 million dollars.

The deal has created one of the world’s leading denim manufacturers, with combined revenue above 500 million dollars.

“We are delighted to have helped JDU management make such significant progress in growing the business. We wish the enlarged company well for the future," said Roger Moh, managing director at EmergeVest. In turn, Richard Sun, CEO at JDU, showed his gratitude towards EmergeVest saying that the latter has “enabled us to capitalise on growth opportunities, culminating with the merger with Roo Hsing. We are well positioned for future development.”

Denim, a high-return yielding investment for EmergeVest

EmergeVest first invested 20 million dollars in JDU in 2014 and supported the company’s expansion with additional capital in 2015. Since then, the investment has generated a more than 2x multiple and an IRR in excess of 25 percent for EmergeVest, according to market sources.

China-based, JDU has 25 manufacturing facilities across Asia and Africa and serves apparel for leading international brands and retailers including Levi Strauss, Gap, Fast Retailing, Primark and C&A.

It’s worth highlighting that during its investment period, EmergeVest reorganised JDU’s shareholding structure, buying out a previous private equity investor, optimised JDU’s balance sheet, financed expansion into new markets and product categories, and managed the merger with Roo Hsing.

Image:Levi’s Official