(Yicai Global) Aug. 22 -- Chinese menswear brand Fujian Septwolves Industry Co. [SHE:002029] is planning to acquire German designer fashion brand Karl Lagerfeld's Chinese retail businesses and brand license for USD48 million (CNY320 million).
Septwolves said yesterday that it will spend USD36 million (CNY240 million) to purchase an 80.1-percent stake in Karl Lagerfeld Greater China Holdings Ltd. (KLGC), owner of the permanent right to use the Karl Lagerfeld trademark in Greater China.
The firm will also inject USD12 million (CNY80.1 million) into Karl Lagerfeld (Shanghai) Ltd., KLGC's official retailer in mainland China, via subscription to a share placement. After the deal, Septwolves will expand its customer base and improve its brand image by taking over all of the German luxury brand's businesses in Greater China.
Karl Lagerfeld is a Paris-based fashion brand operated by designer Karl Otto Lagerfeld. Well recognized as an industry leader, Lagerfeld is the head designer of Chanel and Fendi.
Karl Lagerfeld has retail stores in Europe, North America, the Middle East and Asia. In Greater China, it operates six stand-alone shops and outlet mall locations in Beijing and Shanghai.