The Largest Overseas Acquisition Of China'S Textile And Garment Industry Is US $120 Million Acquisition Of A US Group Company.

YOUNGOR group, China's textile and garment giant, has recently completed the delivery procedures with the US KELLWOOD company about the assets list of Hongkong new Ma group.

It is reported that the M & a paction amount of US $120 million is the largest overseas M & A in China's textile and apparel industry so far.

The "going out" of traditional industries is just in time.

"The international competitiveness of China's textile industry is stronger and stronger. At the same time, schools in some developed countries have even removed the textile profession."

Li Rucheng, chairman of YOUNGOR group, said in an interview that in the process of undertaking international industrial pfer, the dominant industries in China are some of the traditional industries.

Under such circumstances, the realization of the internationalization strategy through mergers and acquisitions will be able to better enhance the international competitiveness of China's dominant industries.

It is understood that through overseas mergers and acquisitions, YOUNGOR group is distributed in Sri Lanka, Philippines and other 14 production bases.

Li Rucheng, chairman of YOUNGOR group, said it could consider expanding factories in places like Sri Lanka in the future.

Efficient integration of industrial chain -- the advantages of traditional industries in M & A

"After the completion of the merger, we are the world's first clothing company from cotton to weaving, logistics, and sales to cover the whole industrial chain."

YOUNGOR personage introduces, YOUNGOR from upstream cotton cultivation began to buy, invest in a series of related enterprises, reached the coverage of the whole industry.

Insiders pointed out that the basic R & D, component patents and core technologies of some high-tech industries are controlled by foreign companies, and it is difficult to get them through mergers and acquisitions. In traditional industries, Chinese enterprises have comparative advantages in the most basic links. Therefore, after the purchase and purchase, management, sales channels and technologies are added, it can better reflect the integration advantages of the entire industrial chain.

Li Rucheng said that after the completion of the merger, YOUNGOR has 43 thousand employees at home and abroad, with an annual production capacity of 80 million, making it the largest clothing manufacturer in the world.

However, this is not what Li Rucheng values most. He repeatedly stressed that "in traditional industries, enterprise competition is no longer a competition of single products, but a competition of the whole industry chain."

Li Rucheng said that through the acquisition of YOUNGOR, more than 20 well-known brands of ODM (original design manufacturer) processing business, with Nautica, Perry Ellis and other five licensing brands, a top team with decades of experience in international brand management and design experience, a sales channel accessible to hundreds of department stores in the United States, and a powerful logistics system to ensure the smooth flow of these products into the department store.

This undoubtedly greatly improves YOUNGOR's industrial chain and its layout in the global market.

"Going out" should be based on stability.

We have contacted the internationally renowned enterprises at 4 billion euros in price, but after investigation, they found that it was not what YOUNGOR wanted.

The internationalization strategy of domestic enterprises should be based on stability and not blind expansion.

The integration of culture is the biggest risk of overseas mergers and acquisitions. YOUNGOR has made full preparations for this.

It is understood that after the acquisition of the new Malaysia group by the US KELLWOOD company, its headquarters is still in Hongkong, and has maintained relatively independent operation.

Xu Jingbo, CEO of new Ma group, said that Hongkong enterprises are familiar with international operation, and Southeast Asian countries generally have a favorable impression of mainland China.

Informed by YOUNGOR's success in mergers and acquisitions, Philippines's subordinate employees also spontaneously congratulated themselves.

He said that the new Ma group has had many years of cooperation with YOUNGOR, and there are many similarities with YOUNGOR in terms of corporate culture and development philosophy.

Therefore, there is no question of cultural integration between the two sides.

"Cheap acquisition price, cultural similarity and business complementarity make our acquisition" zero risk "M & A.

Li Ru Cheng said.