China's Shandong Ruyi is buying Kohlberg Kravis Roberts & Company's 70 percent share in the French luxury brand SMCP Group, KKR announced on Thursday.

A joint statement released by the three companies confirmed that Shangdong Ruyi has agreed to become the sole negotiator to purchase a $1.5 billion share in SMCP. It further said that KKR, which purchased a majority stake in SMCP in 2009, will now hold a minority interest, while SMCP's founder and management will reinvest together with Shandong Ruyi.

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The terms and conditions stipulated in the deal were not divulged. JP Morgan is the exclusive underwriter of the debt linked with the transaction, according to Forbes.

The recent deal will boost the fashion line's ambition to expand internationally, particularly in Asia as it will take advantage of Shandong Ruyi's expertise.

Yafu Qiu, Shandong Ruyi's chairman, said the agreement is a "significant step for Shandong Ruyi in our continued endeavor to become a leader in the fully integrated textiles and fashion business, both in China and globally."

SMCP, which owns the brands Sandro, Maje and Claudie Pierlot, currently runs over 1,100 outlets in 34 countries across the globe. The brand is categorized under the accessible luxury sector, with tag prices above fast-fashion chains like Zara and H&M, but below elite names such as Louis Vuitton. Last year, the company reported a 33 percent sales growth at 675 million euros ($766 million).

Meanwhile, Philip Guarino from the consulting firm China Luxury Advisors said that this is a huge chance for expansion in Asia, explaining that "customers are more educated and demanding than ever before, more value conscious, and mixing and matching price points in their wardrobes in a very Western way."

TagsShandong Ruyi Technology, SMPC, JP Morgan, Fosun International, Guo Guangchang, KKR, Fashion