CITIC Capital has made an investment in Shanghai Xiangmiao Trade Co., Ltd., brand owner of Reclassified, a Chinese perfume and home fragrance brand. No financial terms were disclosed.
(Hong Kong, 22 January 2021) Private equity arm of CITIC Capital Holdings Limited (“CITIC Capital”) is pleased to announce that it has completed its investment in Shanghai Xiangmiao Trade Co., Ltd., brand owner of RECLASSIFIED (“RE” or “the Company”) via its third RMB-denominated China buyout fund on 18 January 2021. The transaction marks the eighth completed acquisitions in the beauty and lifestyle sector in recent years, and the on-going expansion of its exposure and footprint in the space.
Founded in Shanghai in 2013, RECLASSIFIED is a leading Chinese prestige perfumery house that has created a variety of iconic original scents featured in its extensive portfolio of products, including perfume, home fragrance, car fragrance, scented candles, and scented personal care products. The company runs over 100 retail outlets spanning 50 cities nationwide, offering customers extraordinary experience with scents and senses.
Mac LIN, CEO of RECLASSIFIED, said: “The name RECLASSIFIED is a combination of ‘RE’ and ‘Classified’, illustrating our determination to differentiate and refusal to be classified. Each bottle of RECLASSIFIED fragrance has its own story and a philosophy. Since its establishment, the brand has vowed to work only with world-leading perfumers and developers to create high-quality, original fragrances and genuine experiences that are unique to Chinese consumers. We are committed to bridging interesting culture, upholding individuality, and expressing freedom for our consumers.”
Hanxi ZHAO, Senior Managing Director of CITIC Capital, said: “Consumers in China today have high aspiration for better lifestyle. This aspiration has stimulated the rapid development of related sectors. The growth of the perfume and fragrance sector has been particularly strong, with iconic brands such as RECLASSIFIED emerging in China. RE has a deep understanding of the needs of Chinese consumers and takes pride in its strong heritage in world-class product development. RE also has a strong offline retail network and online presence, enabling the brand to reach a broad consumer base through different channels. We are excited to be working with the young and passionate team of RECLASSIFIED and look forward to witnessing the rising of an authentic Chinese trendsetter in the perfume and fragrance sector.”
CITIC Capital believes in the long-term growth prospects of the beauty, personal care and lifestyle sector, and will continue to look for attractive investment opportunities in the sector. In addition to RECLASSIFIED, CITIC Capital’s investments in the related sector include: Erno Laszlo, a leading American premium skin care brand; Trilogy, a clean beauty brand from New Zealand; Axilone, a world-class cosmetics packaging provider; UCO, an e-commerce service provider serving premium beauty brands; ScentAir, a scent marketing solutions provider; Lifestyles/Jissbon and LELO, leading global brands in the intimate wellness sector.
Note: PricewaterhouseCoopers and Haiwen & Partners provide financial and legal advisory services to CITIC Capital respectively.
About Shanghai Xiangmiao Trade Co., Ltd.
Established in Shanghai in 2013, Shanghai Xiangmiao Trade Co., Ltd. owns “RECLASSIFIED”, a leading Chinese prestige perfume and home fragrance brand. The brand is renowned for its perfume, home fragrance, car fragrance, scented candles, scented personal care products. The company currently runs more than 100 retail outlets spanning 50 cities in China. For details, please visit www.reclassified.cn
About CITIC Capital
Founded in 2002, CITIC Capital is an alternative investment management and advisory company. The firm manages over USD32 billion of capital across 100 funds and investment products through its multi-asset class platform covering private equity, real estate, structured investment & finance, and asset management. CITIC Capital has over 200 portfolio companies that span 11 sectors and employ over 800,000 people around the world.
CITIC Capital’s private equity arm focuses on control buyout opportunities globally and has completed over 79 investments in the past years in China, Japan, U.S. and Europe. The private equity arm currently manages USD7.6 billion of committed capital. For more information, please visit www.citiccapital.com.