L Catterton launches joint venture between GXG & 2XU

01 Dec '17

3 min read

L Catterton Asia, the Asian unit of the largest consumer-focused private equity firm, has launched a joint venture between two of its portfolio companies – GXG, the Chinese menswear fashion group, and 2XU, a leader in premium compression activewear from Australia. The move will make the two companies capitalise on the fitness and sportswear market in China.

Established in 2007, GXG is a leading menswear fashion group in China with a powerful online presence, extensive POS coverage and a highly recognised brand name. GXG has a portfolio of four uniquely positioned brands, including GXG, gxg.jeans, gxg.kids and Yatlas. With innovative designs and strong brand awareness, GXG is available in more than 2,100 stores across China, as well as online through leading third party platforms such as Tmall and VIPshop.

2XU, founded in 2005, is a premium sports apparel brand endorsed by elite athletes around the world and driven to advance human performance through the development of world-leading compression garments. Considered one of Australia's most innovative companies, 2XU is at the forefront of the rapidly growing global sportswear market and is well positioned to continue capitalising on the increasing demand for technical athletic wear around the world.

Since acquiring a controlling stake in GXG in 2016, L Catterton Asia has been working closely with the company's management team not only to support organic growth in existing segments, but also expand into new categories. In addition to facilitating the partnership with 2XU, L Catterton Asia has supported GXG by sourcing additional collaboration opportunities and assisting with global expansion.

Chairman and managing partner of L Catterton Asia, Ravi Thakran, stated: "We are delighted to announce this exciting partnership between GXG, the number one fashion menswear brand in China, and 2XU, a leading sporting apparel designer. With its unique brand positioning and strong retail presence, GXG stands out by providing customers high fashion design within the casual and business wear markets. GXG and 2XU are led by seasoned management teams with deep understanding and complementary knowledge of the fashion and retail industries, and we look forward to continuing to work alongside and support both teams. With L Catterton's extensive resources and network, and our unique approach to value creation, I am confident the new venture has the potential to take both brands to the next level."

Commenting on the partnership with 2XU, Yu Yong, CEO of GXG Group, said: "As a strategic partner, L Catterton Asia has supported GXG's multi-branding, globalisation and all-series development goals. Under the guidance of L Catterton Asia, we are excited to bring new experiences to sports enthusiasts by helping launch 2XU in China. I have long admired the 2XU team's expertise, dedication, enthusiasm and persistence for sports and look forward to working with them on this exciting new project."

Paul Higgins, CEO of 2XU, stated: "GXG's unmatched knowledge of the Chinese fashion industry makes them the ideal partner to support our expansion into China and I am confident we have assembled the right team for this project. Since L Catterton Asia's investment in 2013, 2XU has experienced significant growth and I am grateful for their partnership as we continue to expand into attractive markets around the world." (SV)

Fibre2Fashion News Desk – India

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