BDA advises Etam on sale of Chinese RTW operations to a Hong Kong investor

BDA Partners is pleased to announce that its client, Etam Group, has agreed to sell its Chinese ready-to-wear (“RTW”) operations to a Hong Kong-based investor introduced by the founder and CEO of Jaoboo Fashion Group International, Mr. Jinguo Zhou. As a result of the transaction, Mr. Zhou, a leading retail expert in China, will take charge of Etam’s RTW activities in China with immediate effect. Financial terms were not disclosed.

BDA was the exclusive financial advisor to Etam Group on the transaction. Sidley Austin was the legal advisor to Etam Group.

Headquartered in Shanghai, Etam’s China RTW operation owns and operates four well-recognized womenswear brands and boasts a well-established, nationwide, omnichannel distribution network with 1,600 points of sales across 300 cities, and a presence on the leading Chinese e-commerce platforms.

Laurent Milchior, CEO of Etam Group, commented: “As we enter a new stage of development, we believe Mr. Zhou is ideally positioned to take Etam’s RTW business in China to the next level. With Mr. Zhou’s experience, Etam’s RTW brands can continue to grow and reach more customers across China.”

Jinguo Zhou, Founder and CEO of Jaoboo, added: “The Etam RTW brands are well known to consumers across China and I am excited to have reached an agreement with Etam Group to take the brands and business forward. With Etam’s strong customer base, its brand heritage and our expertise in China, I am confident we have a bright future ahead of us.”

Karen Cheung, Head of Consumer and Luxury, Asia, BDA, said: “We’re proud to advise on another highly-visible consumer transaction involving some of the longest-standing and best-recognized foreign RTW brands in the Chinese market. This transaction continues the strong momentum for our Consumer and Luxury practice. It demonstrates the depth of our relationships and experience in Asian retail M&A.”