JD United, a denim manufacturer which supplies retailers such as Levi Strauss, Gap and Primark, has been sold by its private equity owner for around $500m (£385m), City A.M. understands.
Taiwan-listed Roo Hsing pocketed the China-headquartered company, which has 25 manufacturing facilities across Asia and Africa. Following the deal, textile business Roo Hsing will have revenues of more than $500m and becomes one of the world's largest denim manufacturers.
JD United will be the first exit by private equity firm EmergeVest, which also owns UK pallet distributor Palletforce and logistics group NFT Distribution. The Hong Kong-based firm, which focuses on complex businesses or situations, has made around two-times its money invested on the sale of JD United.
“EmergeVest has enabled us to capitalise on growth opportunities, culminating with the merger with Roo Hsing. We are well positioned for future development,” said JD United's chief executive Richard Sun.
The business also designs and creates garments, as well as suppling materials. Since EmergeVest first invested around $20m in 2014, supplying more capital in 2015, JD United has moved into new markets and product categories.
Its services now span traditional apparel manufacturing, product design and development, raw material sourcing, rapid sampling, laundry, quality control and lab testing, packaging and logistics.
EmergeVest was founded in 2013 by Heath Zarin and Roger Moh, two former HSBC investors. Zarin began his career as a corporate lawyer in New York, while Moh comes from a computer science background. Both formerly worked at Emergent Investment Group.