Carlyle Group sells ROK apparel maker Yakjin for $12 mn

25 Aug '20

2 min read

Pic: Shutterstock

The Carlyle Group, a US multinational private equity, alternative asset management and financial services corporation, has sold off its stake in South Korea’s Yakjin Trading Corp., an original equipment manufacturer (OEM) for global brands like Old Navy, GAP and Banana Republic, to JS Corporation, divesting of the Korean investment in seven years.

Carlyle has agreed to sell 70 per cent of its stake, as well as the remaining 30 per cent stake held by the company’s chief executive officer, to JS Corp for a combined 14.3 billion won ($12 million), according to JS’s recent regulatory filing.

In 2013, the US firm bought the majority stake in the Korean apparel exporter for 204.8 billion won via its Asian growth capital fund. Yakjin also ships clothes to the US department store chain Nordstrom and retailer Walmart under original design manufacturer (ODM) and OEM contracts.

Yakjin’s sales are expected to grow by 5 per cent to 580 billion won this year from 2019, led by growing demand for protective clothing amid the spreading coronavirus. Operating profits increased by 11 per cent year on year from 2018 to 14.5 billion won last year.

JS Corp, which makes handbags for luxury brands such as Burberry, Coach, DKNY, Guess, Kate Spade, Michael Kors, and Ralph Lauren, expects to utilise Yakjin’s global production and distribution networks to boost its presence in the global luxury market, according to Korea media reports. Yakjin runs factories in Cambodia, Indonesia, Vietnam and Haiti.

Carlyle made the exit in its second attempt. In 2015, it failed to sell Yakjin due to a price difference with a potential buyer.

Fibre2Fashion News Desk (DS)

More Apparel/Garments News - South Korea...