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Lunar acquires majority stake in China's Yeehoo Group
21 Feb '12
2 min read
Lunar Capital Management Ltd. and its associates have obtained a majority stake in Guangzhou-based baby products company, China Yeehoo Group Ltd.
The deal involves an investment of US$ 100 million, which will be partly utilized for procuring the controlling stake, while the rest would be utilized for expansion of the acquired firm, Lunar said.
As per the announcement, the existing management team of Yeehoo would continue to be a substantial minority stakeholder.
Derek Sulger, a Lunar associate who is to join the acquired company's Board of Directors, said the increasing purchasing power of parents and grandparents provide an excellent opportunity to cater to China's rising demand for branded baby products.
He said they look upon Yeehoo as a group having highly distinguished franchise with great growth potential, and hence were eyeing an association with the company to steer their future expansion.
Alice Guo, Founder and CEO of Yeehoo, too voiced his excitement about the new association with Lunar, and said the latter's resources would help them further develop their brand equity, and to enhance their allegiance to quality and standing amongst Chinese mothers and their kids.
Yeehoo Group operates over 650 outlets in 138 Chinese cities and sells around 4,000 different products, which includes apparel, maternal products, bath care and bedding.
The deal involves an investment of US$ 100 million, which will be partly utilized for procuring the controlling stake, while the rest would be utilized for expansion of the acquired firm, Lunar said.
As per the announcement, the existing management team of Yeehoo would continue to be a substantial minority stakeholder.
Derek Sulger, a Lunar associate who is to join the acquired company's Board of Directors, said the increasing purchasing power of parents and grandparents provide an excellent opportunity to cater to China's rising demand for branded baby products.
He said they look upon Yeehoo as a group having highly distinguished franchise with great growth potential, and hence were eyeing an association with the company to steer their future expansion.
Alice Guo, Founder and CEO of Yeehoo, too voiced his excitement about the new association with Lunar, and said the latter's resources would help them further develop their brand equity, and to enhance their allegiance to quality and standing amongst Chinese mothers and their kids.
Yeehoo Group operates over 650 outlets in 138 Chinese cities and sells around 4,000 different products, which includes apparel, maternal products, bath care and bedding.
Fibre2fashion News Desk - China
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