Fosun buys 35% stake in Italian luxury menswear brand

The valuation was not disclosed but the Financial Times said it would be in the low millions of euros. The investment came about after Patrick Zhong, Fosun's head of global investments, was pleased with a suit he ordered from the Italian company.

"Following an in-depth analysis of the sector, Fosun has chosen Caruso as its first investment in luxury menswear, with a view of leveraging the company's competitive edge in 'virtuoso' manufacturing into an authentic Italian lifestyle brand for the global market," Zhong said when announcing the deal with Umberto Angeloni, president and CEO of Caruso.

These efforts will focus on the "new consumer" market, starting in China.

Caruso was founded in 1958 and currently employs more than 600 people at its base in Soragna, in the north Italian province of Parma. The company posted total sales of EUR64.4 million ($85.7 million) in 2012.

Fosun previously invested in French-based vacation resorts operator Club Méditerranée (Club Med) in 2010, helping a company that was getting squeezed in Europe open two properties in China and attract more Chinese tourists. Fosun and Axa Private Equity are now in the process of taking Club Med private.

The Chinese conglomerate also backed Danish electronics manufacturer Bang & Olufsen and Greek jeweler Folli Follie Group.

Last week Fosun disclosed that it has secured commitments of $525.2 million for its China Momentum Fund, which is targeting $1 billion for outbound investment. The vehicle will invest in foreign companies seeking to expand in China, with a particular focus in Europe.

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• Topics
• Europe
• Greater China
• Expansion
• Consumer
• Fosun Group
• Consumer
• China
• Europe
• Growth capital