Sandro parent SMCP considers IPO

SMCP Group, parent of French brands Sandro, Maje and Claudie Pierlot, has revealed it is considering a public listing in Paris.

The group said the intention to float was supported by its majority shareholder Shandong Ruyi Technology Group, which took control of the business in March last year from private equity house KKR in a €1.3bn deal. Chinese textile group Shandong made its move for the business after SMCP had announced a previous intention to float.

SMCP has enjoyed strong growth in recent years. It increased sales by 16.4% in 2016 to €786m and EBITDA was up 22% at €130m. Its largest brand is premium women and men's brand Sandro, which accounts for 46% of sales, followed by womenswear brands Maje (40%) and Claudie Pierlot (12%).

It has been rapidly expanding internationally as well with international sales now accounting for 54% of total sales. EMEA (ex France) accounts for 28%, APAC 14% and Americas 12%. E-commerce sales grew 80% last year to account for 10% of overall sales with freestanding stores making up 48% and corners (or concessions) 37% with parters accounting for the remaining 6%.

"Leveraging on these strong dynamics, SMCP is today considering a public listing of its shares on Euronext Paris, with the strategic support of its majority shareholder Shandong Ruyi Technology Group. Such a transaction, which remains subject to market conditions, would allow SMCP to continue on its profitable growth journey and to pursue its mission to spread Parisian chic around the world," the group said in a statement.

Shangdong will retain its position as majority shareholder following an IPO and "is committed to support SMCP's continued development and strongly believes a public listing would support its global development and visibility," it said.

Sandro was founded in 1984 by Evelyne and Ylan Chetrite as a wholesale brand. It opened its first retail store in Paris in 2004. Sister brand Maje was founded by Judith Milgrom, again as a wholesale brand, in 1998 and made its move into retail in Paris in 2003. In 2009 Sandro and Maje acquired Claudie Pierlot, which had been established by the French designer of the same name in 1984, and the SMCP Group was formally established in 2010. The Chetrites and Milgrom remain shareholders.