Hong Kong Lingerie Maker to Revive Sale Halted by Virus

(Bloomberg) -- Lingerie and swimwear maker Hop Lun (Hong Kong) Ltd. is reviving a sale that was previously stalled due to the pandemic, people with knowledge of the matter said.

The Hong Kong-based company is seeking financial investors such as private equity firms in the renewed sale process, said the people, who asked not to be identified as the information is private. Hop Lun is seeking a valuation of more than $500 million in a transaction, they said. 

Company founder Erik Ryd could retain a stake in the company and continue running the operations after any deal, one of the people said.

The firm has picked BDA Partners Inc. and Goldman Sachs Group Inc. as advisers, and has started sounding out potential investors for a sale process that could start as soon as this month, the people said. 

Hop Lun considered selling a partial stake in order to fund its expansion, Bloomberg News reported in 2019. 

Deliberations are at an early stage and the company could still decide against a sale, the people said. Representatives for BDA and Goldman Sachs declined to comment, while Hop Lun did not respond to a message sent to the email address on its website.

Founded by Ryd in 1992, Hop Lun manufactures underwear and swimwear on behalf of international clients, according to its website. It has nine factories across China, Bangladesh and Indonesia and has about 30,000 employees, according to Hop Lun Collection’s website. 

The company has expanded and invested in new facilities and capacity in the past two years, acquiring German brand Dorina and obtaining the rights to sell British luxury lingerie brand Janet Reger, one of the people said. Online sales grew 400% to account for 8% of the total during its current financial year, the person said.

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