Fashion M&A
Fashion Group Hyungji signed an M&A investment contract with EFC, which possesses shoe brands including Esquire.
A total of 67 billion won (US$60.58 million) for the undertaking will raised by paid-in capital increases and internal reserves through Hyungji.
Established in 1961, the EFC is a domestic manufacturer of well-known shoe brands including Esquire and Young Age, and handbag brands including SONOVI and the Esquire Collection.
Through the takeover, Hyungji is planning to transform the company into a total fashion company with women’s clothing, men’s clothing, outdoor clothing, school uniforms, golf wear, distribution, shoes, handbags, and accessories.
Fashion Group Hyungji acquired Elite Basic in 2013, entering the school uniform market. Also, it acquired the domestic rights for French brand Castel Bajac last year, entering the golf wear market.
The company acquired the domestic license for Italian women’s clothing brand Stefanel as well. Through the takeover of the EFC, Hyungji expects to create synergy with its existing businesses by embarking upon the shoes and accessories businesses in earnest.
An official from the company said, “The EFC is one of Korea’s leading fashion retailers specializing in footwear, along with Kumkang Shoes and Elcanto. Despite the economic recession and financial difficulties, it is a company which has steadily recorded 150 to 200 billion won [US$135.64 to 180.85 million] in annual sales.”