Shandong Ruyi snaps up controlling stake in Bally

Chinese textile and fashion group Shandong Ruyi extended its years-long global buying spree on Friday to ink a deal for a controlling stake in Swiss luxury shoes and leather company Bally.

Ruyi, based in a predominantly rural area of Shandong province in northern China, will add Bally to its rapidly growing portfolio of global brands, including the nearly 250-year-old UK suit maker Gieves & Hawkes, UK clothing maker Aquascutum, Paris-based fashion group SMCP and Italy’s Cerruti 1881.

In little more than three years, the company has also sewn up deals for cotton and wool producers in Bulgaria and Australia, as well as cloth and textile makers in Scotland.

JAB Holding, the Luxembourg-headquartered investment vehicle that principally manages the fortune of Germany’s reclusive Reimann family, will sell the Bally stake to Ruyi for an undisclosed sum but will retain a holding in the business, the Chinese group said in a statement.

Bally was founded in the mid-1800s and is best known for its luxury shoes and other leather products. It has grown rapidly in China, where it has more than 50 outlets, according to its website.

From humble roots — its chairman, Qiu Yafu, started as a worker in state textile factories in the 1970s — Ruyi has grown to become one of China’s largest textile producers.

Its acquisition of SMCP in 2016 for about $1bn came as a surprise to both the fashion industry and investment bankers, who did not expect the little-known company to make a serious attempt for a French fashion brand.

Ruyi has since secured about 14 cross-border acquisitions and partnerships, and controls nearly 40 international brands. The $285m acquisition last year of menswear company Trinity from Hong Kong’s Li & Fung added brands such as Kent & Curwen, D'Urban and Gieves & Hawkes.

People familiar with Ruyi say it is positioning itself to become one of the world’s largest textile makers and a serious player in the global fashion industry over the next 10 years.