Suggesting investor appetite remains strong for unique luxury properties, Chinese fashion conglomerate Youngor Group has acquired 100 percent of French childrenswear brand Bonpoint from private investment firm EPI.
Financial terms were not disclosed.
It is understood Bonpoint attracted several unsolicited offers, and Youngor outmaneuvered other potential suitors by touting its retail know-how, manufacturing prowess and beauty connections that can super-charge Bonpoint’s already buoyant growth in Asia.
“EPI sees this transaction as an opportunity to provide Bonpoint with the means to accelerate its strong growth momentum and to embark on a new chapter in its history with the support of a new shareholder, who is an expert in the Asian market and brand development,” according to a statement shared first with WWD.
The deal “aligns with EPI’s long-term value creation strategy,” it added.
Acquired by EPI in 2007, Bonpoint has since more than tripled its store count to some 130 locations in 30 countries.
In the release, EPI credited successful product diversification, and an international push for “solid and consistent revenue growth.”
Indeed, 48 percent of revenues now come from Asia, and 42 percent from Europe – meaning lots of runway for growth in North America, and other emerging markets.
Already 25 of Bonpoint’s revenues stem from cosmetics, launched in 2011. While Bonpoint markets fragrances, it is understood skin care products for children sell briskly in China and make up the lion’s share of the business.
Beauty products by Bonpoint.
Courtesy of Bonpoint
Market sources estimate Bonpoint’s revenues have grown more than fourfold to roughly 200 million euros, with a double-digit level of profitability.
Founded in 1975 and touted as the only French couture house dedicated to childrenswear, Bonpoint boasts its own atelier in Paris, and turns out one of the largest assortments of clothing for babies, infants and children in the luxury and designer space.
In recent years, EPI has built its teams and added a number of high-calibre executives, headlined by the 2019 hire of Valérie Hermann as managing director of its fashion and luxury division, which also includes J.M. Weston.
Hermann accrued her merchandising, operations and marketing prowess as president of global brands at Ralph Lauren Corp., and chief executive officer roles at Reed Krakoff, Yves Saint Laurent and John Galliano.
She leads the strategy of the division, in collaboration with Christopher Descours, president of the Paris-based family holding, which also has divisions dedicated to wines and spirits, and financial investments, including real estate.
Commenting on the transaction, Decours said the deal would “provide Bonpoint with all the assets to support this new stage of growth that is emerging, while preserving what makes it unique in the world of children’s luxury.”
Looks from Bonpoint.
Courtesy of Bonpoint
“Youngor has presented development plans for the brand that have fully convinced us. I am confident that this new shareholder, alongside the entire management team, will continue to make this house of excellence shine,” he added, trumpeting the brand’s “remarkable international recognition.”
Founded in 1979 by Rucheng Li as a men’s tailoring brand, Youngor has become a multifaceted conglomerate with businesses in apparel, property development, investment, textile manufacturing and global trade. It is listed on the Shanghai Stock Exchange.
In recent years, Youngor has investments in such international brands as Alexander Wang, Helly Hansen and Undefeated.
“We are proud to be able, from today, to support Bonpoint in its international and product development strategy,” Jingbo-based Youngor said in the statement. “For 50 years now, Bonpoint has showcased excellence and embodied the French art de vivre. We will provide Bonpoint with our expertise,
particularly our deep knowledge of the Asian market, to continue this excellent momentum while preserving what makes the identity and unique spirit of this French luxury house.”
A discreet but shrewd executive, Descours is said to be open to expanding his family’s holdings in luxury, beauty, consumer products and real estate should the right investment opportunities arise,.
EPI’s other properties include the Champagne houses Piper-Heidsieck and Charles Heidsieck, and the wine makers Biondi-Santi and Château La Verrerie, plus various real estate holdings. It also holds 30 percent of French shirtmaker Figaret.
