The French luxury giant has just announced the acquisition of a majority stake in luxury fine jewelry brand Qeelin to expand its global business and luxury market in China. The transaction - which value remains undisclosured, will be finalized in January 2013.
PPR did not disclose the cost of the acquisition but said it was a similar size to its acquisition ofBalenciaga in 2001.
Alexis Babeau, the managing director of PPR's luxury division, said after the acquisition PPR will help Qeelin to accelerate its expansion in China and even become the top brand in the world, reported the ‘China Daily’. At the same time, PPR has promised that the operating strategy of Qeelin will not be changed and the brand will benefit from PPR's resources in property, media advertising and e-commerce.
According to the Chinese jeweler, more new stores will be opened in the Chinese mainland and Hong Kong soon. PPR chairman and chief executive Francois-Henri Pinault said in a statement: "We thus have great ambitions for the brand and will make it benefit from our expertise and know-how, so that it can speed up its development."
In return, Qeelin chief executive and co-founder Guillaume Brochard said PPR was "the ideal strategic partner to lead our company towards a new stage in its development".
Founded in 2004 by Chinese designer Dennis Chan, and French entrepreneur Guillaume Brochard, the brand operates 14 boutiques (seven in Mainland China, four in Hong Kong and three in Europe).
Pinault said Qeelin “shows strong growth potential in China and beyond. We thus have great ambitions for the brand and will make it benefit from our expertise and know-how, so that it can speed up its development,” reported ‘Forbes’.