Saville Row men’s tailoring business Gieves & Hawkes is to be acquired by its Chinese licensee Hong Kong menswear company Trinity in a deal which could be worth up to £60m.
The deal, agreed today, will see Trinity purchase the brand and UK business of Gieves & Hawkes from a subsidiary of the Hong Kong-based Wing Tai Properties, which has owned the men’s formalwear business since 2002.
The initial purchase price paid for the business is said to be £32.5m but as part of the deal Trinity will also make annual payments to Wing Tai for 18 years up to a cumulative maximum amount of £60m, dependent on the future growth of Gieves & Hawkes’ Greater China business.
The news of the sale comes just over a month after it was announced that Gieves & Hawkes chief executive John Durnin is to leave the business after two years in the role.
Trinity holds the licensing rights for the Gieves & Hawkes brand in Greater China and has a network of over 100 Gieves & Hawkes stores in the region.
In total Trinity operates over 500 retail outlets across Greater China and elsewhere in south-east Asia and South Korea. It owns luxury British men’s clothing brand, Kent and Curwen, which it bought in 2008, as well as Cerruti 1881, which it bought in 2010.
The British-based Gieves & Hawkes business which will be acquired by Trinity has 14 retail points in the UK and Ireland, as well as a design studio and manufacturing facilities for bespoke men’s clothing.
“We are delighted that we will be adding Gieves & Hawkes to our stable of high-end/luxury menswear brands,” said Trinity group managing director Mr Wong Yat.
“Gieves & Hawkes is renowned for its strong heritage in fine tailoring, and its dedication to quality, and these characteristics give the brand immense appeal for discerning clients around the world.”
Update: The deal completed on May 3 with Trinity paying an initial £32.5m and making additional annual payments for 18 years of up to a maximum of £60m. Gieves & Hawkes’ deputy chairman Mark Henderson will remain in his position.
Wong Yat Ming, group managing director of Trinity, said: “We look forward to building on our success in recent years in China with the Gieves & Hawkes brand and to expanding the business elsewhere in Asia and in the UK and other markets. We expect Gieves & Hawkes to enjoy a bright future within Trinity.”