Chinese group to buy control of fashion labels Sandro, Maje - sources

By Astrid Wendlandt

PARIS (Reuters) - Chinese textile group Shandong Ruyi is about to buy control of SMCP, the French firm behind fashion brands Sandro, Maje and Claudie Pierlot, for 1.3 billion euros ($1.47 billion)including debt, two sources close to the deal said on Tuesday.

The transaction, which as of early Tuesday evening was not yet signed, was expected to be announced on Wednesday, the sources added, declining to be named.

Sandro, Maje and Claudie Pierlot, which sell dresses priced at around 200 euros, operate in what is classified as the accessible segment of the luxury market. That sector has been benefiting from buoyant demand among fast-growing middle classes, particularly in countries such as China.

SMCP, which is controlled by the private equity firm KKR , recently filed documents to launch an initial public offering with the hope of floating in Paris this month.

Its preparations for the IPO added pressure on the Chinese group to strike a deal, the sources said.

One of the sources said that talks had really accelerated in the past week. "With the markets being what they are, I think KKR preferred to have a bird in hand than two in the bush," a second source said.

The sources confirmed a report by the Financial Times which said the deal could be announced on Wednesday.

No-one at KKR and SMCP was immediately available for comment.

(Reporting by Astrid Wendlandt; editing by Geert De Clercq)