CVC Capital Partners ("CVC") confirms that funds advised by CVC Asia Pacific Limited has completed its investment in C.banner International Holdings Limited ("C.banner" or the "Company") through a combination of secondary shares in the Company, exchangeable bonds issued by the three major shareholders as well as convertible bonds issued by the Company. Two other investors invested in the Company alongside with CVC.
Founded in 1995, C.banner has since grown into the second largest shoe company in the mid-to-premium women's footwear market in China with a 7.4% market share. It operates a vertically integrated model that encompasses design, manufacturing, distribution and retailing. The Company's products are sold under 5 brands (C.banner, EBLAN, Sundance, Mio and Naturalizer) through an extensive retail network of 1,824 outlets (as at March 2012) across China. The Company is listed on the Main Board of the Hong Kong Stock Exchange (stock code: 1028).
Commenting on the transaction, Mr. Chen Yixi, Chairman of C.banner said: "We are extremely delighted to have CVC joining us as our strategic partner. We believe that the new funding together with CVC's extensive global network and deep experience in the consumer and retail sector would add significant value to our business. We look forward to building a long term partnership with CVC to continue strengthening our capabilities in brand building, network expansion, financial management, operational efficiency and corporate governance. We will also leverage CVC's global network to explore new business opportunities and expand our brand portfolio."
Francis Leung, Chairman of Greater China and Managing Partner of CVC, said: "C.banner is a leading player in the fast growing ladies' footwear market in China with a strong and stable management team. C.banner's flagship brand enjoys high brand awareness among Chinese consumers and is perceived to be elegant, sophisticated and high quality. We are very excited about our partnership with C.banner."
William Ho, Partner of CVC, commented: "Over the past decade, C.banner has demonstrated an impressive track record in growing its revenue and profitability organically through same-store-sales growth and new store openings. Building on its solid platform and strong network, coupled with CVC's global network and sector expertise, C.banner is well positioned to capture the enormous growth potential in the Chinese consumer and retail market. We have identified a number of value creation initiatives to further improve the business and will work closely with management to jointly execute the business plan and bring the company to the next level. "
This is a proprietary transaction. CVC was advised by Freshfields Bruckhaus Deringer and Bank of America Merrill Lynch.
About CVC Capital Partners
CVC is a leading international private equity firm. Founded in 1981, CVC today has a network of 20 offices and some 250 employees throughout Europe, Asia and the US. CVC manages funds on behalf of over 300 investors including pension funds, financial institutions, sovereign wealth funds and other investors. To date, CVC has raised over US$44 billion in funds and has completed over 290 investments in a wide range of industries and countries across the globe, with an aggregate transaction value of US$167 billion. CVC Funds currently own over 60 companies worldwide, which generate over US$127 billion in revenues and employ around 400,000 people.