-BCR Group acquires Fanxin Retail Display, a leading Chinese retail display solution provider for premium cosmetic brands-

Founded in 1994 and headquartered in Shanghai, Fanxin is a leading full-service player in the cosmetic retail display industry, offering one-stop solutions including design, manufacturing, and installation services. The Company's blue-chip customer base includes LVMH, L'Oréal, Chanel, Estee Lauder, Shiseido, and other international premium cosmetic brands. Fanxin has c. 300 employees and a 25,000 sqm manufacturing plant in China's Zhejiang Province. The stake was acquired from Fanxin's owner and CEO, Rachel Zhong, who will roll over a minority stake in BCR and remain CEO at Fanxin following the transaction.

This acquisition marks a key milestone in BCR's transformative journey, accelerating BCR's strategic expansion into the attractive cosmetic retail market and enhancing its industry leading position. Since Partners Group's investment in 2019, BCR has recorded solid growth in its core sportswear business, riding the secular growth of sports fashion and "China-Chic", and successfully expanded into consumer electronics and the general retail space. BCR's new state-of-art 120,000 sqm factory, which will be in service from Q4 2022, is set to offer strong back-end support for the Company's top line growth and further improve its operational efficiency. This journey has been steered by a top-tier management team, which was established in line with Partners Group's entrepreneurial governance approach. The synergetic combination of BCR and Fanxin, which fits with Partners Group's value creation plan, will further transform BCR into a scaled, diversified, and institutionalized retail display leader.

Following this acquisition, BCR and Fanxin will launch strategic initiatives to accelerate integration and crystalize synergies. Key areas of focus will include market and customer base expansion, back-end function integration to optimize operational efficiency, cross-region collaboration of manufacturing facilities, and continuous improvement in customer experience.  

Rachel Zhong, CEO, Fanxin, states: "Since inception 15 years ago, Fanxin is uniquely positioned to capitalize on the fast-growing premium cosmetic market in China. We remain fully committed to offering the best retail display solutions to our customers. With access to Partners Group's financial resources and BCR's industry expertise, I am convinced that Fanxin will crystalize its full growth potential in the next stage of its development."

Hong Li, CEO, BCR, notes: "Fanxin is a pioneer in China's premium cosmetic retail industry with a blue-chip customer base and top-notch service quality, and we are excited to be able to grow alongside them. Through utilizing our industry resources and leveraging Partners Group's global network, we will support Fanxin in its future growth and enhance BCR's market leading position."

Thomas Tao, Member of Management, Private Equity, Partners Group, comments: "Premium cosmetic retail is a highly attractive subsector of the retail display market that we have been actively tracking through our thematic investing approach. We have conviction in the enormous growth potential of the cosmetic retail display industry, driven by continued premiumization trends in China. We look forward to working with BCR and Fanxin to capture future upsides and realize long-term value creation."

About BCR

Founded in 2008 and headquartered in Shanghai, BCR is a leading player in the retail display industry, managing the design, manufacture and installation of clients' display fixtures. BCR serves over 3,000 retail stores worldwide every year, across the sportswear, fashion, electronics and consumer retail industries. BCR has around 900 employees and a 65,000 sqm manufacturing plant in China's Jiangsu province, with a new state-of-art factory of 120,000 sqm to be in service from Q4 2022.