Ruyi acquires % of Bagir shares to expand African manufacturing base
Bagir, an innovative garment design, manufacturing and supplier, announced that it has established a strategic partnership with China’s Shandong Ruyi Investment Holding Group (hereinafter referred to as “Shandong Ruyi”). Shandong Ruyi will acquire 54% of the enlarged share capital of Bagir for US$16.5 million. Became the company’s largest shareholder.
Founded in 1961, Bagir is a global innovative garment design, manufacturing and supplier. It focuses on the research and development, manufacturing and marketing of high-quality men’s and women’s garments, with an annual output of approximately 3 million pieces. Its brands include GIR Collection, AR-RED , Jay Godfrey.
Bagir said part of the investment will be used to expand suit trousers and jacket production lines at Bagir’s low-cost manufacturing base in Ethiopia. Bagir announced earlier this month that it was in early negotiations with a textile manufacturer to form a strategic partnership and said sales and adjusted EBITDA in fiscal 2017 would be lower than expected.
Bagir CEO Eran Itzhak said: “With the help of Shandong Ruyi, we will maximize the opportunities brought by Ethiopia’s manufacturing base and be able to work faster and more accurately.
In the current challenging market environment (negatively affected by slowing sales and increasing manufacturing costs), Bagir has been working hard to remain competitive and expects to increase the order volume of its production base in Ethiopia by mid-2018. The facility is expected to produce approximately 3,000 pairs of pants per day.
Shandong Ruyi Group was founded in 1972 and is headquartered in Jining, Shandong. It is one of the largest textile companies in China and has a complete production chain, including raw material cultivation, textile processing, brand clothing design and sales. Shandong Ruyi Group has 13 industrial parks and the largest production lines and advanced technologies in China. It also has a network of more than 4,000 points of sale (POS) serving a customer base on six continents around the world. Not only that, Shandong Ruyi Group includes more than 20 subsidiaries and has 3 listed subsidiaries in China, France and Japan.
In recent years, Shandong Ruyi Group has made continuous moves in the international market and has successively acquired many overseas brands, such as:
In June 2010, it invested approximately US$44 million to acquire 41.53% of the shares of Renown, a well-known Japanese clothing company, and became the largest shareholder.
In 2016, it acquired a controlling stake in the French fashion group SMCP, the parent company of Sandro, Maje, ClaudiePierlot and other brands.
In March this year, it acquired British windbreaker brand Aquascutum from Hong Kong-listed company YGMTRADING for US$117 million.
In October this year, it acquired the apparel and advanced fabrics business of Invista, a US polymer and fiber supplier, including the Lycra® brand.
On October 20 this year, Ruyi Holdings’ SMCP successfully landed on Euronext Paris, with a current market value of approximately 1.6 billion euros (approximately 12 billion yuan). Ruyi acquires 54% of Bagir shares to expand manufacturing base in Africa
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