UK private equity firm Synova Capital has sold its handbag maker brand The Lunan Group (TLG Brands) to Hong Kong fashion company Global Brands Group Holding Limited. The exit brought Synova Capital a triple return on invested capital for the brand.

TLG Brands is one of the leading suppliers of fashion accessories in the UK's market. The company owns some prominent handbag brands such as Fiorelli, Modalu and Nica. The brands' concept is affordable luxury handbag and accessories, and it's widely popular in the UK. The three brands are sold in more than 400 stores across the UK, as reported by Drapers.

Synova Capital first invested in The Lunan Group and create TLG Brands in 2008. According to FashionMag, Synova Capital plans to develop TLG Brands' online presence and drive international sales. The firm aims for Asia and Europe markets and as a result has enjoyed significant growth in both its online business and in international markets.

Total revenues grew from £13 million pre-investment to more than £30 million at the exit. In addition to that, profits have also grown almost threefold over the same period under Synova Capital's ownership. The exit deal with Global Brands Group was advised by global firm KPMG and Pinsent Masons.

TLG Brands' new owner, Global Brands Group, is listed in Hong Kong as an apparel, footwear, fashion accessories and related lifestyle product company. The company holds licenses prominent brands from the US as well as worldwide including Calvin Klein, Michael Kors, Kate Spade, Nautica, Nine West and Juicy Couture. Besides fashion apparel, Global Brands Group also licences for cartoon, film and game characters such as Hello Kitty.

Director of TLG and Managing Partner of Synova Philip Shapiro stated what the exit means to the company. "We worked with an exceptional management team to deliver strong growth in TLG's leading brands both in the UK and internationally. The exit is a result of the ambition and hard work of that team and their excellent working relationship with Synova," Shapiro said.

Furthermore, Shapiro also noted the brand's positions in the market as strategic for more growth. "With market leading positions in all of their key territories we wish the team every success in the next stage of the company's development," he added, as quoted by Synova Capital.

UK handbag maker TLG Brands has managed an exit from previous owner Synova Capital to Hong Kong-based Global Brands Group. The deal has realized a return of three times invested capital for the UK's leading supplier of fashion accessories, after years of strong growth.