French retailer Roche Bobois strengthens position in China

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

The company has signed a share purchase agreement to acquire a 51% stake in Shanghai Rock Castle Furniture. The company directly operates one Roche Bobois store in Beijing and two in Shanghai, as well as 25 franchise stores. The agreement provides for a gradual increase in the Roche Bobois stake so that the group eventually becomes 100% owner.

Roche Bobois has been present in China through its franchisees for 20 years. The company says this move represents an important step in its international expansion. It will accelerate its growth in Asia while exploiting the potential of the Chinese market. A letter of intent for the agreement was first signed in April.

Total sales of the stores operated and managed by Shanghai Rock Castle Furniture amounted to 23 million euros (or approximately 25 million US dollars) in 2023, including 8 million euros from the three stores in Shanghai and Beijing. In a press release, Roche Bobois noted that Shanghai Rock Castle Furniture’s EBITDA margin exceeds that of the US/Canada region, which was 27.1% in 2023.

Roche Bobois’ US business, based in New York, ranked 65th. Furniture today‘s Top 100 list. Internationally, Roche Bobois is present in 54 countries with a network of 340 directly operated and franchise stores under the Roche Bobois and Cuir Center brands.

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