KKR Is Not Sure That IPO Is Still On Sale, But The Deal Has Been Confirmed.

Sandro, Maje and Claudie Perlot, the three largest luxury luxury clothing brand, the French fashion group's largest shareholder of SMCP SAS and the global private giant KKR & Co. LP spokeswoman on Wednesday confirmed the rumours of rumors in the past two months that the SMCP market will be put on the market as early as next year, but the spokesman said that the decision was not yet made specifically on whether to sell or sell shares.

KKR acquired a 65% stake in the company from the founder of L Capital and SMCP SAS in 2013, when the company valued 650 million euros.

SMCP SAS group's revenue growth in the first half of the year rose to 32%, far higher than 20.5% in 2014. The rapid expansion of its brand Sandro and Maje Maje in Europe, North America and Asia accounted for 316 million euros in the first half of the year, and 8.9% higher than that at the constant exchange rate. The group's international market share rose sharply from 48% last year to 48%. In the first half of the year, the international market increased by 14.9%, benefiting from the euro's weakness, and the actual revenue growth was more than 64.9%.

Because Sandro, Maje and Claudie Perlot target consumers are mainly middle class, the main fashion products priced at euro 100 euros and -400 are currently in great market space. At present, according to the latest statistics, China is the most middle-class country in the world with more than 100 million. Besides, Chinese native soil enterprises have been making great acquisitions in the past few years, including the clothing industry, so there are not a few Chinese private equity funds and enterprises interested in SMCP SAS.

As early as L Capital sold SMCP SAS holding power, there were Swire Pacific Ltd. 0019.HK (0019.HK) Hongkong Pacific Limited by Share Ltd participated in the bidding, although Taigu belonged to British capital, but Swire shares were mainly operated in Hongkong, and owned commercial real estate and apparel agency business. At that time, it was the Rue Madame of the buyer's shop that brought SMCP SMCP into Hongkong and exploded in the Hongkong market.

It is precisely because of the rapid expansion and market space of light luxury fashion that the valuation of SMCP SAS has reached 2 times the annual sales. Next year, whether IPO or other companies take over, Daniel Lalonde, President and CEO of SMCP SAS, will not slow down the pace of expansion of 120 stores every year.

Since the end of 2012, the global luxury market has been on the decline. With the decline of the Chinese market as the representative, China's affluent consumers have lost their enthusiasm for leather products, so the Louis Vuitton Louis Weedon, Gucci Gucci, Prada Prada, Coach and so on have experienced the most gloomy time in 10 years, especially the latter three brands are the worst in the whole industry.

However, in the decline of luxury leather goods market, fashion, especially Sandro, Maje, which is simple and cost-effective, has been extremely popular. At the same time, Chinese consumers' overseas consumption fashion ratio has greatly increased, and the industry such as buying and selling has flourished. SMCP SAS has not only grown rapidly in the French local market, but also the Chinese market.

SMCP SAS also used Hongkong as a springboard to expand continuously in the mainland market. In 2013, when the French Galeries Lafayette Lafayette was opened, Beijing group opened four stores at its department store.

According to data, in the first half of this year, SMCP SAS Group recorded an income of 316 million euros, an increase of 32% over the previous year, much higher than the 20.5% in 2014, mainly driven by the growth of 64.9% in the international market, which accounted for 38% from 38% last year.

The group's comparable sales increased by 8.2% annually, and the international market increased by 14.9%.

Daniel Lalonde, President and chief executive officer of SMCP SAS, said the group achieved a high double-digit comparable revenue growth in all key markets, including China, and revealed core earnings EBITDA EBITDA growth was higher than revenue, but he refused to disclose details.

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In the first half of this year, SMCP SAS group added 64 sales points, of which 70% were outside France and 12 in Asia, so that as of June 30th, the total number of sales points in 64 countries and regions increased to 1039. During the period, the group entered 5 new markets in Macao, Mexico, Sweden, Kuwait and Kazakhstan.

Daniel Lalonde said that the expansion rate will continue in the second half of the year, and the same number of new stores will be opened, including Shanghai IFC, Hang Lung Plaza, Shenzhen the Mixc, Hangzhou Tower, Dubai, London, Milan and Paris.

Compared with KKR & Co. LP's unique eyesight, behind the world's largest luxury group LVMH private equity L Capital appears to be the same as LVMH, in terms of investment in luxury goods and apparel industry can not show its advantages.

When L Capital shares SMCP SAS SAS, the French group's revenue has just reached 200 million euros, which is a standard medium-sized enterprise. When L Capital quit, the annual revenue of SMCP SAS was close to $500 million.

Although L Capital has been successful in the investment of SMCP SAS, the market thinks it is still "KKR" for KKR & Co. LP. The private equity giant KKR is the most successful investor of SMCP SAS.

Because L Capital lets go of the most profitable and highly rewarding SMCP SAS, instead of its Ochirly Asia's parent company, which was invested by L Capital Asia in 2001.

Heji international group and Jorya Zhuo Ya women's clothing company Xiamen Xin he Limited by Share Ltd is still in the hands, and has not been able to ship for more than four years. In the face of the current economic situation in China and the declining trend of local brands in international brand competition, it is difficult to find the "two men" in the two investments. Besides, China's stock market is also not suitable for IPO, especially the traditional manufacturing industry.

Of course, compared with the investment of L Capital,

Premature abandonment of Michael Kors is probably the most failed paction in the history of fashion industry. What is even more ridiculous is that LVMH's Marc Jacobs and DKNY brands have tried to imitate the way of Michael Kors, but now they are struggling in the market competition, and the IPO plan may be far from being expected.

A number of sources said KKR Co. & LP is now working with UBS AG (UBSN.VX) UBS and investment bank Merrill Lynch to launch the SMCP SAS marketing plan, including the sale to other private equity funds or groups, as well as listing, the fastest next March.