SMCP explores Paris IPO
In a statement, the group said it wanted to take advantage of a "strong momentum" in recent years and that "SMCP is now considering listing on Euronext Paris, with the strategic support of Shandong Ruyi Technology Group," which will remain its majority shareholder over the long term. The statement did not provide any financial details about the listing.
The IPO, which remains subject to market conditions, would enable SMCP to "pursue its profitable growth path" and support its international development.
In 2016, SMCP saw its annual sales increase by 16.4%, to 786 million euros, while its EBITDA grew by 22% to reach 130 million euros.
Outside France, its sales rose by 24%, now accounting for 54% of the group's revenues.
Founded in 1984 with the creation of the Sandro brand, the group had already considered a public listing in March 2016 before it was bought a few weeks later by the Chinese textile giant Shandong Ruyi Technology.
The new owner said it was ready to support SMCP's ambition to become a "world leader in affordable luxury" and to support its future growth, particularly in Asia. The Chinese company was especially committed to preserving "the DNA and unique identity of the group's brands," with plans that allowed the creative and design teams to remain in Paris.
Shandong Ruyi Technology is one of the largest textile manufacturers in China, offering products and services across the entire value chain, including raw materials, retail and design. It has 13 industrial sites in China and operates more than 3,000 retail touch points in the Asia-Pacific region.
Following the acquisition, Sandro and Maje founders Evelyne Chétrite and her sister Judith Milgrom have remained in charge of the artistic direction at SMCP. They also stayed on as minority shareholder following U.S. fund KKR's 65% purchase of the French group’s shares in 2013. KKR has since sold off the majority of those holdings.
Translated by Susan Spies
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