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Global Brands Group [HK: 787], one of the world’s leading branded fashion accessories, footwear and apparel companies, acquired TLG Brands from British lower mid-market private equity firm Synova Capital. TLG (formerly The Lunan Group) owns handbag brands Fiorelli, Modalu and Nica and is the UK’s leading supplier of fashion accessories. Synova, which acquired TLG in July 2008, realized “a return of 3x invested capital” on the deal, the company says. TLG, founded in 1988 by brothers Stuart & David Lunan, embarked with Synova’s support on a growth strategy by way of a multi-channel business model and new e-commerce platform to drive international sales with a particular focus on Europe and Asia. Over the past three years, the company has successfully launched Fiorelli, NICA and Modalu in a number of international markets. TLG Brands has significantly grown market share in recent years and the brands themselves are sold throughout the UK in more than 500 independent retail outlets and leading department stores. TLG was listed by the Sunday Times as one of the fastest growing UK businesses in terms of international sales. The company’s total revenues grew from £13m pre-investment to over £30m at Synova’s exit with profits growing almost threefold over the same period. “We worked with an exceptional management team to deliver strong growth in TLG’s leading brands both in the UK and internationally,” said Philip Shapiro, managing partner of Synova and director of TLG. “The exit is a result of the ambition and hard work of that team and their excellent working relationship with Synova. With market leading positions in all of their key territories we wish the team every success in the next stage of the Company’s development.” “I have greatly enjoyed working with Synova who demonstrated a detailed understanding of our business,” said Mike Hiscock, CEO of TLG. “Their strategic input and vision has been fundamental in ensuring we achieved our goal of developing a multi-channel, multi territory branded accessories business.” Global Brands Group (GBG) designs, develops, markets and sells branded apparel, footwear, fashion accessories and related lifestyle products across a diverse portfolio of owned and licensed brands. Its customers are retailers, department stores, hypermarkets, off-price retailers, independent chains, specialty retailers and e-commerce channels in the Americas, Europe and Asia. GBG Controlled Brands include Frye, Juicy Couture, Spyder and Aquatalia among others. Its Licensed Brands include Calvin Klein, Cole Haan, Michael Kors, uess, Coach, Nautica, Tommy Hilfiger, Nine West and Under Armour, as well as characters, including Hello Kitty and Disney’s Frozen, Teenage Mutant Ninja Turtles and Peanuts. Global Brands Group was listed on the Main Board of the Hong Kong Stock Exchange by way a spin-off from its parent company Li & Fung, in July 2014. William Fung, GBG’s chairman and non-executive director, is a managing director of Li & Fung Group, one of the largest trading companies in Hong Kong, as well as an alumnus and trustee of Princeton University. Fung is also non-executive director of HSBC Holdings and an independent non-executive director of CLP Holdings Limited, VTech Holdings Limited, Shui On Land Limited and Singapore Airlines. Synova Capital is a private equity firm specializing in investments in UK growth companies. The firm typically invests between £10m and £30m in UK companies operating in attractive niches with significant opportunities for earnings growth and value creation. The firm invests across five sectors: business services, financial services, technology, consumer brands and healthcare and education. Synova was founded in 2007 by its managing partners, David Menton and Philip Shapiro, and is based in London, United Kingdom. In January 2016, the firm closed its third fund Synova Capital Fund III LP at its hard cap of £250m. The firm has raised a total of nearly $540 million in funding to date.]]>