China Vogue welcomes capital investment from consortium led by TPG
Over USD45 million investment will support the continued fast growth of Sisulan brand throughout China
Quanzhou, Fujian Province, PRC, October 19, 2010 - China Vogue Casualwear Ltd. ("China Vogue" or the "Company"), a leading casual sportswear company in China under the Sisulan brand, today announced that global investment firm TPG formed a consortium supported by Partners Group and by ARC China Holdings Limited, an existing shareholder, to invest over USD45 million into the Company.
Headquartered in Quanzhou of Fujian Province, China Vogue designs, develops, manufactures and markets stylish casual sportswear, ranging from apparel, footwear to accessories. The Company operates on a wholesale basis to authorized distributors and sells to consumers directly through Sisulan branded retail outlets that the Company operates. Sisulan is a national stylish casual sportswear brand, with relative strength in the second- and third-tier provinces in China.
According to a recent market study by Frost & Sullivan, China Vogue is one of the top 10 brands in Chinese casual sports apparel sector. Over the past 15 years, the Company has established a solid brand and a strong geographic footprint. According to the same study, the Chinese sports apparel market grew at a CAGR of 34% from 2005 - 2009 and is believed to be still underpenetrated. With China's low annual expenditure per capita of USD10.2 in 2009, compared to markets such as Japan and South Korea with respective annual expenditure per capita of USD63.2 and USD119.9, there is strong potential for additional growth.
The high growth Chinese stylish casual sportswear market is at an early stage of development and is primarily driven by the rise of the emerging Chinese middle class. Branded consumer businesses such as China Vogue are benefiting significantly from the rapidly increasing discretionary income levels in China. In addition, the international sporting events such as the 2008 Olympics Games in Beijing and the upcoming 2010 Asian Games in Guangzhou, as well as the Chinese government's persistent support for sport activities via the National Fitness Program, will continue to raise public awareness and participation in sports and fitness.
"We are excited to bring on such leading global investment firms as strategic and financial partners," said Mr. Cai Midun, Chief Executive Officer of China Vogue. "As we continue to execute on our growth plans, their value-added approach and expertise in our market segment will be extremely valuable. Their long-term investment philosophy, operational focus, and network of world class professionals will help China Vogue and the Sisulan brand as we look to continue our expansion throughout China."
Sing Wang, Co-Chairman of TPG Greater China and Head of TPG Growth North Asia, commented, "We are delighted to work together with China Vogue. They are a fast growing business with a strong brand and are well positioned to lead the domestic casual sportswear market in China. We believe our operational and investment expertise and successful track record in the Chinese retail consumer sector will benefit the ongoing growth of their business."
TPG has a history of over 15 years investing in China. It has a team of 40 highly talented and experienced professionals working domestically, harnessing value through local and global knowledge and expertise. TPG has one of the largest investment portfolios in China with a track record of investments such as Lenovo, Daphne, Shenzhen Development Bank, WuMart, China Grand Auto, UniTrust Finance, MI Energy, NT Pharma, ShangPharma and Yunnan Red Winery, among others. TPG also has significant global resources for strengthening the operations of its portfolio companies, including about 50 specialized operating professionals with extensive industry expertise and operational experience to help investee companies address issues such as revenue growth, cost optimization, and capital allocation efficiency.
"We are pleased to partner with TPG and ARC China in this exciting investment opportunity," stated Christoph Rubeli, Partner in the Private Equity Directs team at Partners Group. "China Vogue is a leading Chinese sportswear company with outstanding growth potential and strong management team. We look forward to supporting China Vogue in the execution of its growth initiatives with our global industry network."
"China Vogue has demonstrated exceptional growth in its store network and distribution since its founding," said Adam Roseman, Chief Executive Officer of ARC China Holdings Limited, a pre-existing investor in the Company. "We are very excited to partner with such a strong management team and believe that the company is poised to achieve strong growth in revenue and in brand awareness throughout China."
About China Vogue
China Vogue Casualwear Ltd. ("the Company"), headquartered in Quanzhou of Fujian Province, designs, develops, manufactures and markets stylish casual sportswear in China under the Sisulan brand. Sisulan is a national brand of stylish casual sportswear, with relative strength in the second- and third-tier provinces. Products range from apparel, footwear to accessories. The Company sells its products on a wholesale basis to authorized distributors as well as operates its own retail outlets. The Company has an extensive distribution network of over 1,000 self-owned and third party-owned retail outlets. China Vogue's website is www.sisulan.com.
About TPG
TPG is a leading private investment firm founded in 1992, with more than USD 47 billion of assets under management and offices in San Francisco, Beijing, Fort Worth, Hong Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, Paris, Shanghai, Singapore and Tokyo. TPG has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, growth investments, joint ventures and restructurings. TPG's investments span a variety of industries including financial services, travel and entertainment, technology, industrials, retail, consumer, media and communications, and healthcare.
About Partners Group
Partners Group is a global private markets investment management firm with over EUR 20 billion in investment programs under management in private equity, private debt, private real estate and private infrastructure. The firm manages a broad range of funds and customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, New York, London, Guernsey, Luxembourg, Dubai, Singapore, Beijing, Tokyo and Sydney. The firm employs over 400 people, is listed on the SIX Swiss Exchange (symbol: PGHN) with a market capitalization of over CHF 4 billion with a clear majority owned by its 36 Partners and all employees. Partners Group's website is www.partnersgroup.com.
About ARC China
ARC China Holdings Limited, together with its affiliates, is an investment management firm focused on making investments in entrepreneur-owned small and medium sized enterprises located in the Tier II and Tier III regions of China. ARC China's investment strategy is to make value-oriented, highly involved and exit-driven equity investments in a diversified portfolio of domestic consumption-focused high-growth Chinese businesses in these regions, and then to create value in these businesses by applying the team's professional experience and relationships to help the companies upgrade their management teams, technology, systems, business processes and financial and other information reporting. ARC China's team of experienced investment professionals and in-house due diligence staff have deployed this proven and unique on-the-ground investment strategy in China since 2008. More information can be found on ARC China's website at www.arcchina.cn.
