(Yicai Global) Nov. 27 -- La Chapelle Fashion plans to acquire the remaining 60 percent stake in French women's clothing and apparel firm Naf Naf to own it completely.
LaCha Fashion 1, a unit of La Chapelle, will pay EUR35.3 million (USD40 million) to buy out Trendy Pioneer and East Links International and gain a full control of LaCha Apparel II Sarl, which is a Luxembourg-based owner of Naf Naf, according to the Shanghai-based parent's statement. The firm still needs regulatory approvals for the transaction.
Naf Naf is not expected to have a significant impact on La Chapelle's profit and loss this year, the Chinese firm said, adding that the future impact depends on the success of integration.
La Chapelle bought 40 percent of the Epinay-sur-Seine-based firm in June. The Chinese company, which owns brands such as Othermix, Marc Ecko, Jack Walk, O.T.R, Siastella and Gartine, logged a 30 percent decrease in net profit in the first nine months this year.
Naf Naf operates almost 490 retail outlets in France, Spain, Belgium and Italy. Its operating loss was EUR6.5 million (USD7.4 million) last year and EUR3.4 million in the first half of this year.
Editor: Emmi Laine