SMCP in "exclusive negotiations" to buy Fursac's costumes<

The parent company of ready-to-wear brands Sandro, Maje and Claudie Pierlot (SMCP) announced Tuesday having entered "exclusive negotiations" in order to acquire the house of Fursac, in order to strengthen in the ready-Porte for men.

This acquisition, the amount of which has not been specified, will be "financed in full by debt", specifies SMCP who thus wishes to invest "one of the most dynamic markets of ready-to-wear", according to his press release.

According to Euromonitor International, the sector is actually very promising: the world's turnover of men's fashion has been $ 440 billion (389 billion euros) in 2018, up 4.5% over one year.

A turnover of 41.4 million euros

This acquisition was welcomed Tuesday by investors, the SMCP action taking, shortly before 11:00 am, 1.24% at 13.10 euros, in a small downward scholarship (-0.15%).

Founded in 1973 and endowed with a "fortified Parisian DNA", the Fursac brand "enjoys a unique positioning on the luxury market accessible for men, combining tailor, style, chic and timeless know-how", estimates SMCP.

The group achieved in 2018 a turnover of 41.4 million euros (+5.4%) and an operating margin editor's note) higher than that of SMCP, according to the buyer.De Fursac has a network of 54 shops in 29 cities in France and Switzerland.

Its majority shareholder is Edmond Cohen, current CEO since 1990, who claimed to have "the conviction that SMCP is the ideal partner to support the ambitions" of the brand, whose artistic direction has been entrusted to Alix Le Naour since 2011.

Tony Parker

Known for its costumes, De Fursac is experiencing a strong international craze, especially after Chinese customers, adds the press release, which specifies that the realization of the operation is envisaged before the end of the third quarter of 2019.

SMCP is already present in the male ready-to-wear segment, with its Sandro Men branch, which weighs around 10% of its total turnover, said group general, DanielThe Londe, during a conferencetelephone.

With the acquisition of De Fursac, "we enter a new segment, that of luxury accessible for men, a segment where Sandro is not necessarily very present" and which represents around 21 billion euros, up 4,5% per year, he added.

"Very fragmented, much more than that of the woman" according to M.Lalonde, this market is broken down into three segments: "sportswear" with brands like Lacoste, Polo or Tommy Hilfiger, "Urban Chic" with actors like Sandro Men, and finally "Modern Tailoring", where Fursac is positioned, known in particular for having dressed Tony Parker and Boris Diaw basketball players.

International

In addition, SMCP will accelerate the geographic development of DE FURSAC in Europe and Grande China (Hong Kong included) "to reach in the medium term more than 30% of its international sales", opening 5 to 10 stores per year, while the share of its sales made abroad is only 2% currently.

"The Chinese, who came to buy brand products when they came to do tourism in Paris", especially in department stores, will now be able to do it at home, said Mr..Lalonde, who thus intends to take up the same strategy used by the brands of the SMCP group.

In parallel, the group will accompany Fursac in its digital transformation and aims to penetrate more than 10% of its online sales in the medium term, added M.The Londe.

In 2018, SMCP crossed the symbolic bar of the billion euros in turnover, up 11.5%, drawn in particular by Maje and the Asian market.

The Sandro and Maje brands were founded in Paris, respectively in 1984 and in 1998 by Evelyne Chetrite and Judith Milgrom, which continue to ensure its artistic direction.For its part, the brand Claudie Pierlot, founded in 1984 by Mrs. Claudie Pierlot, was acquired by the SMCP group in 2009.

(with AFP)