Kidiliz Group, the European leader in children’s fashion, and Zheijiang Semir Garment Co. Ltd, the leading children’s fashion group in China, announce their entry into exclusive negotiations.
With around € 2 billion in combined sales, the merger between the two groups will create the number two worldwide dedicated to children’s fashion. At the end of the transaction, the Semir Group will acquire the entirety of Kidiliz Group, with the support of its management.
Established in 1996, the Semir Group is a multi-brand leader in China’s apparel market. The Group owns the Balabala brand, the undisputed leader in the Chinese children’s fashion market, and Semir, another major brand, leader in the “casual” youth segment. The Semir Group operates a number of international brands in the Chinese market through joint ventures and licensing agreements. It has 3,000 employees, a network of 8,000 single brand stores and generates 25% of its online sales for a turnover of 1.6 billion euros. The Semir Group has been listed on the Shenzhen Stock Exchange since 2011, with a market capitalization of approximately 3.9 billion euros. The group is controlled by its founders, the Qiu family.
Kidiliz Group, with a portfolio of 15 premium brands, generated 427 million euros in sales in 2017. It has a significant international presence in more than 80 countries. China, which had about 17 million births in 2017, is a geographic area of strong markets where Kidiliz Group has been present for more than 20 years.
This combination, complementary in terms of markets and product offerings, will enable Kidiliz Group to continue its development in Europe and accelerate its presence on the Chinese market. As for the Semir Group, it will be able to reinforce its expertise in the premium child textile market.