European jewelry brand APM Monaco has teamed up with private equity investors from China and Europe to accelerate its global expansion.
On April 17, TPG Capital Asia (the regional arm of American asset company TPG), leading a consortium of investors including the investment firm China Synergy and Paris-based private equity firm Trail, has reached a definitive agreement with APM Monaco to acquire a 30 percent stake in the company from existing shareholders, according to a press release by TPG.
The transaction is expected to close in the next couple months, the statement said. Though no financial details were revealed, financial publication Reuters, which reported the brand was actively seeking investors in February this year, said: “the deal could potentially fetch close to $1 billion.”
The investment has followed the recent roaring development of luxury consumer spending in China. Global consultancy Bain & Co. reported the country’s luxury market grew 20 percent year-on-year in 2018 for the second consecutive years, indicating the appetite for high-end goods from Chinese consumers, especially the millennials and Generation Z, has no signs of waning.
With extensive experience and expertise in investing in luxury companies such as Neiman Marcus, APM Monaco expects TPG to give it critical know-how in further expanding in key areas. “TPG Consortium is the ideal leading global partner to continue to develop our contemporary luxury vision,” said Philippe Prette, founder and CEO of APM Monaco. “TPG’s unique expertise in growing iconic brands and their belief in our innovative products and business model makes them an excellent partner to work with, and at the same time, China Synergy and Trail bring their respective strengths in China and Europe.”
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The silver jewelry maker APM Monaco was founded in 1982 by Ariane Prette, who took inspiration from cultures and fashion styles in Monaco and France. The brand was one of the international brands that pioneered in investing in the Chinese market, as evidenced by the fact that it moved productions to China as early as in 1992.
Today, the Monaco-inspired, Hong Kong-headquartered brand has over 200 retail stores in 26 cities. China is a significant market to APM Monaco, which the brand has not only opened stores in major cities but also sold on key online, e-commerce channels including Alibaba’s Tmall marketplace and WeChat Mini Program store. Last October, the brand also named Chinese actress Yao Chen as the brand ambassador and unveiled a collaborative collection “APM Monaco x Yao Chen” in Beijing.