(Yicai Global) Aug. 9 -- Chinese high-end fashion brand Shenzhen Ellassay Fashion Co. [SHA:603808] will acquire a 75 percent stake in designer brand Vivienne Tam Shenzhen Co. through a CNY37 million (USD5.44 million) deal with the latter's parent company Peony Power Ltd.
"Vivienne Tam is an internationally acclaimed brand and enjoys strong recognition," said Xia Guoxin, Ellassay's chairman. "The brand is very unique and has a wide range of loyal customers. Additionally, our strong operational capacity will create favorable conditions for Vivienne Tam to expand in China."
"I believe this acquisition can further enrich the company's brand portfolio and help achieve our strategic goal of becoming a Chinese high-end fashion group with international influence," he added.
Vivienne Tam, founded in 1994, was part of the first batch of well-known Chinese designer brands.
"Vivienne Tam is not just a brand with pure oriental style. Compared with other brands with purely oriental styles, it does very well in integrating oriental elements and international fashion trends," Xia said.
Ellassay will operate Vivienne Tam entirely independently in China in order to maintain its unique style, and will set up an international design team to carry out product development for young consumers in the Chinese market, the company said.
"We will provide Vivienne Tam with full support in terms of group resources. The company expects to open its first store in China this year with more to follow in twelve months," Xia said.
Ellassay has made moves to boost its presence over the past two years with the 2015 purchase of design rights for the German fashion brand Laurèl and the 2016 acquisition of French clothing company IRO.