Chinese private equity firm Hony Capital has agreed to acquire 30% of Duemmei, the owner of Italian fashion brand Mr&Mrs Italy, to support the brand’s expansion in Asia.
No financial details were disclosed in a company announcement.
“In the past few years, more Chinese people are traveling overseas to buy foreign brands, looking for higher-quality fashion brands, and they prefer luxury brands which target the young generation, producing more casual but high quality products,” said Yuan Bin, manager at Hony. “Mr&Mrs Italy’s products have followed that trend. We believe, Hony’s resources will help Mr&Mrs Italy to expand its business in Asia.”
Chinese consumers spent over RMB500 billion (US$76 billion) on luxury products last year, accounting for one third of the global market. On average, each Chinese family purchased RMB71,000 (US$10,739) in luxury goods last year, twice more than families in France or Italy, according to McKinsey&Company.
Founded in 2007, Mr&Mrs Italy specializes in producing luxury parkas. The company has expanded to China and has established offline stores in Hong Kong, Beijing and Shanghai.
Hony has focused on investment opportunities in the consumer, services and healthcare sectors in the U.S. and Europe. In 2014, the firm acquired a 20% stake in British chain PizzaExpress for about US$1.5 billion.
Founded in 2003 and backed by Legend Holdings Corp, Hony currently has RMB70 billion (US$10 billion) in assets under management. Its portfolio companies include bike sharing firm Ofo, American co-working space firm WeWork and Nasdaq-listed data storage company Seagate Technology.