Hong Kong based Trinity Ltd, part of the privately held Fung Group, has bought UK men's wear brand Gieves & Hawkes in a deal worth up to GBP92.5m (US$147.6m).

Trinity yesterday (11 April) said it will acquire the brand from a subsidiary of Wing Tai Properties, which has owned the company since 2002.

The deal will involve an initial payment of GBP32.5m, and then up to a further GBP60m in annual earn-out payments depending on its performance over the next 18 years. 

Trinity has been a long-term licensee of Gieves & Hawkes in China, with more than 100 stores under its management. Trinity said the brand is its third-largest by revenue and that the acquisition will eliminate any uncertainty around the renewal of the current licence.

"We are very pleased to be adding Gieves & Hawkes to our stable of self-owned brands," said Trinity group managing director Wong Yat Ming.

"Gieves & Hawkes is renowned for its strong heritage in fine tailoring and dedication to quality, the combination of which gives the brand an immense appeal for discerning customers around the world and, most importantly, in fast growing luxury markets like China."

Trinity retails high-end and luxury international men's wear brands, operating over 500 retail outlets across Asia.

"Premium heritage brands like Gieves & Hawkes are very rare jewels in the market," added Ming. "The acquisition of Gieves & Hawkes is aligned with our strategy to own intellectual rights or take on long term licenses in high-end to luxury men's wear brands with a strong heritage.

"With this acquisition, Trinity can take further steps to enhance the value of the brand and grow its business internationally by leveraging on the solid foundation that Trinity has already built for Gieves & Hawkes across Asia."

Once the deal has been completed, Trinity plans to integrate the design and merchandising functions in London and Hong Kong, combine the supply chain in the UK and Greater China, accelerate growth in Greater China under one management, and develop a wholesale and licensing business globally outside greater China.

Gieves & Hawkes holds three Royal Warrants as suppliers to the Queen, the Duke of Edinburgh and the Prince of Wales.