French retailer Roche Bobois strengthens position in China

PARIS—Roche Bobois, the international home furnishings retailer with 34 locations in the United States and Puerto Rico, is acquiring a majority interest in its franchisee in China.

The company has signed a share purchase agreement to take a 51% stake in Shanghai Rock Castle Furniture, which directly operates one Roche Bobois store in Beijing and two in Shanghai as well as manages 25 franchised stores. The agreement allows for a gradual increase in Roche Bobois’s stake, giving the group eventual 100% ownership.

Roche Bobois has had a presence in China for 20 years through its franchisees. This move, according to the company, marks an important stage in its international expansion, accelerating its growth in Asia while tapping into the Chinese market’s potential. A letter of intent on the agreement was first signed in April.

Total retail sales generated by the stores operated and managed by Shanghai Rock Castle Furniture were 23 million Euros (or about $25 million U.S.) in 2023, including 8 million Euros from the three stores in Shanghai and Beijing. In a release, Roche Bobois noted Shanghai Rock Castle Furniture’s EBITDA margin exceeds that of the U.S./Canada region, which was 27.1% in 2023.

Roche Bobois’s U.S. operations, based in New York, ranked 65th on Furniture Today’s Top 100 list. Internationally, Roche Bobois has a presence in 54 countries with a network of 340 directly operated and franchised stores under the Roche Bobois and Cuir Center brands.

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