LVMH buys 10% of Ochirly for USD200 million

L Capital, investment vehicle of LVMH, has acquired a 10% stake of the Chinese fashion brand Ochirly, part of Trendy Group. The deal is worth USD200 million and is the first allowing the French luxury giant to set foot at mainland China.

 
The ´South China Morning Post´ reported that L Capital Asia paid USD200 million for the stake in Ochirly, a women's clothing company that is valued at USD2 billion and is considering listing on the Hong Kong or New York stock exchange.

The deal has valued whole of family-owned Ochirly at 2 billion dollars, and marks the first time L Capital, the private equity arm of LVMH, has taken a direct stake in a mainland company, reported the ´South China Morning Post´.

L Capital – investment arm of LVMH - has teamed up with the private equity arm of state-owned financial conglomerate China Citic Group to take the stake in Ochirly, a mid-priced female brand.

The Hong Kong-registered brand was founded in 1999 and had annual revenue of more than 250 million yuan (USD39.7 million) in 2009 and has more than 800 stores in 28 provinces and cities.

The operation has been closed just weeks after LVMH supported Xinhe Fashion by increasing its investment to become the company's second-largest equity stakeholder, reported the ´Asian Venture Capital Journal´. The Xiamen-based fashion company, a high-end retailer which has a sales network of more than 600 stores in premium malls and shopping centers across China.