Carlyle buys stake in Chinese textiles manufacturer

According to a release, Carlyle will purchase 75 million shares in Luolai through its subsidiary CA Fabric Investments at RMB9.60 each, representing a discount to the March 18 closing price of RMB11.08. Following the announcement, the share price rose as high as CNY11.69 in morning trading on March 19; as of midday it had settled slightly to RMB11.63.

Luolai was founded in 1992 and sells home textile products such as quilts, pillowcases, and bedsheets under a variety of brand names including Luolai, Sheridan, and Saint Marc. It distributes products both in China and overseas through its own stores and in partnership with retailers such as Bed, Bath & Beyond.

The company reported revenue of RMB4.8 billion for the year ended December 2018, up from RMB4.7 billion the year before. Over the same period, net profit rose from RMB428 million to RMB524 million.

Carlyle is investing its fifth Asia buyout fund, which closed last year at $6.55 billion. The fund focuses on buyouts and strategic investments across the Asia ex-Japan region in a range of sectors, including consumer and retail, financial services, technology, media, and telecom, healthcare, and industrials. Investments by the fund in China include B2B auto services platform Tuhu and Ambio, a US-based pharmaceuticals company with substantial operations in China.

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• Topics
• Greater China
• Consumer
• Industrials
• PIPEs
• China
• The Carlyle Group
• manufacturing