June 25, 2019 / 5:40 AM / 21 days ago

French fashion group SMCP buys men's luxury brand De Fursac

FILE PHOTO: Men's garments sit on coat hangers inside a Sandro luxury clothing store, operated by SMCP Group, in Paris, France, December 21, 2017. REUTERS/Benoit Tessier

PARIS (Reuters) - French fashion group SMCP has agreed to buy men’s luxury clothing company De Fursac, in a deal which it said would boost its earnings and fit in well with its other existing brands such as Sandro.

SMCP, which is majority owned by Chinese retail group Shandong Ruyi, did not disclose the amount paid to buy De Fursac, but said the deal was a 100% debt-financed acquisition and would boost earnings per share from 2019.

In 2018, De Fursac’s sales reached 41.4 million euros (£37 million), with a strong like-for-like sales growth of 5.4% and an EBITDA margin above SMCP’s margin.

“With De Fursac in our group, we have a unique opportunity to accelerate our strategy, by tapping into a new segment in the fast-growing men’s accessible luxury market,” said SMCP Chief Executive Officer Daniel Lalonde.

“De Fursac is an outstanding brand, poised for growth through international expansion, with the support of our expertise,” he added.

BNP Paribas and law firm Clifford Chance advised SMCP on the deal, while law firm AyacheSalama advised De Fursac.

Reporting by Sudip Kar-Gupta; Editing by Subhranshu Sahu

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