(Yicai Global) Oct. 10 -- Heilan Home Co. [SHA:600398], a leading fast fashion brand based in East China's Jiangsu province, has proposed to buy into high-end children's apparel company Yeehoo for USD100 million (CNY660 million).
The company recently struck an investment agreement with Yeehoo to acquire a 44 percent stake in the latter using its own funds, it said yesterday. Yeehoo's existing controlling shareholder, Best Kids International Ltd., will retain a 46 percent stake and remain the largest shareholder.
A well-known upscale brand for children's products, Yeehoo has extensive product lines encompassing the baby stroller, mother and baby products, children's shoes and socks and toy businesses. It is committed to providing children aged under six with safe, comfortable and healthy products. The firm also sells such leading international brands as Silver Cross (UK) and Avent.
The Chinese market for babies' and children's products is expected to grow rapidly driven by the new 'second child' policy and strong domestic demand for high-end products, Heilan Home noted, adding that the company will become Yeehoo's second-largest shareholder after the deal, thus enabling it to gain a firm foothold in the kids' clothing market.