Mergers And Acquisitions Become A New Topic Of Upgrading Footwear And Clothing Industry

The nine industry revitalization planning rules are being promulgated. Careful people are not hard to find that the two unfamiliar words "merger" and "reorganization" have been put on the agenda frequently.

In fact, some small and medium-sized enterprises in Quanzhou are also facing serious losses or even insolvency. If SMEs want to get out of difficulties and regional industries should achieve overall upgrading, mergers and acquisitions may become a fast and effective way.

The merger and reorganization is frequently available. Recently, the new synergy Fujian limited successfully acquired the MD two sole production project of Quanzhou Fubang Light Industry Co., Ltd., which is the second time in the acquisition market.

It is understood that as early as 2007, the new association Zhi bought the finished shoes brand Adi Wang.

With this acquisition, the industry chain of new synergy has been extended again.

In fact, cases of mergers and acquisitions between enterprises in Quanzhou have been staged.

According to the survey conducted by the Quanzhou investigation team of the National Bureau of statistics, 81 enterprises in the city showed that in 2007, 13 enterprises in Quanzhou had implemented the merger and reorganization of enterprises, accounting for 16%.

Although the statistics in 2008 have not yet come out, we can also feel the increasingly intense M & a boom from several acquisitions that shocked the industry.

Time goes upstream.

In November 2008, Jinjiang Sanli locomotive was purchasing an old state-owned machinery factory in Chongqing, so as to expand and expand the upstream industry chain, and rely on the technology and talent advantage of Chongqing's important domestic machinery manufacturing base to enhance the overall strength of the three power locomotive.

In September 2008, Heng An International announced that the hang on Group invested 229 million yuan to increase its 25% stake in Fujian parent company limited, which accounted for 51% of the shares, becoming the largest shareholder of the parent company and completed the acquisition of the pro food group.

In January 2008, Tianyu Chemical Fiber Co., Ltd., which was listed in Singapore, wholly acquired the Qingdao Zhongda Chemical Fiber Co., Ltd., the world's top five hundred enterprise background, and became the largest nylon manufacturer in China.

Besides, Pioneer Electronics acquired 2 enterprises in Guangdong and Xiamen respectively.

Quanzhou Jia Tai Chinese and foreign famous wine Co., Ltd. invested 15 million yuan into Yongchun Shunde Tang Food Co., Ltd., and gained the controlling power of Shunde hall. It realized the second "marriage" with Quanzhou's time-honored brand after the acquisition of Chun Sheng Tang in 2003.

Fujian Jinjiang Yonghe Fuhua foodstuffs Co., Ltd. is changed into a Sino foreign joint venture by equity acquisition and capital increase of Indonesia's road and Tatsu company.

The financial crisis has reduced the cost of mergers and acquisitions. Many enterprises have stopped their original expansion plan and entered the "winter" state under the financial crisis.

However, Xu Lianjie, chief executive of Heng an international, has made such a voice: "when competitors are all timid, whoever moves first will get the opportunity."

"At present, we are actively looking for suitable projects, and the annual capital expenditure is as high as nearly 1 billion yuan."

Xu Lianjie said that the financial crisis provided a new opportunity for the expansion of Heng An. When other companies were tight enough to prepare for the winter, Heng can take over competitors' production equipment and projects at a lower price. Expansion of scale and acquisition of industry will be the theme of this year.

Heng food is confident that it will become the two listed company in 3-5 years.

Talking about the acquisition of MD two soles production project of Fubang light industry, Su Mingfeng, general manager of the new association, said that he originally wanted to invest two MD soles, but the new investment needed huge amounts of capital and manpower, at least tens of millions of dollars needed, and the payback period was long.

At this time, the relatively mature Fubang MD two soles production project has been incorporated into the vision of the new association.

From the perspective of Fubang company, the production scale of MD's two soles has accounted for 2/5 of the overall production scale of Fubang. Because of the high expenditure and no scale effect, it is difficult to directly proportional to input and output, and also intends to cut it off.

One willing to buy, one willing to sell, two enterprises soon reached a consensus.

In this way, the effective utilization of production capacity is achieved and duplication is avoided.

The financial crisis has also greatly reduced the cost of mergers and acquisitions. It is understood that Fujian Pan Pan food group was ready to acquire an enterprise, the original price of the other party was 120 million yuan, and now it only needs about 30000000.

Cai Wenliang, chairman of Pan Pan, said: "through mergers and acquisitions and mutual participation, enterprises seek advanced management mode and adequate financial support for enterprises, which is actually a new development opportunity for the enterprises that are being constructed."

"Enterprises develop to a certain scale and move towards merger and acquisition is an inevitable process."

Professor Chen Jinlong, Professor of financial research center, School of business administration, Huaqiao University, said: "the advantage of M & A is that M & A is a way for enterprises to expand rapidly and become bigger and stronger. For the acquirer, it is a way to regenerate, survive and develop.

M & A is a win-win process. "

The merger and acquisition boom of Quanzhou enterprises is not only staged in China, but also by some foreign enterprises.

Last year, hundreds of enterprises were invested overseas, according to the Municipal Bureau of external affairs.

Industry analysts said that many enterprises in Quanzhou have good brand strength, and the ability to "go out" has become stronger and stronger.

In the context of the current global financial crisis, Quanzhou enterprises can grasp the opportunity of low price and undertake overseas mergers and acquisitions in a timely manner.

In the meantime, PEAK has been busy integrating upstream suppliers of microfiber production from the existing more than 10 suppliers, selecting 3 companies as their deep strategic partners.

PEAK has been thinking about the integration of upstream suppliers, but has not been able to achieve it for several years.

The reason is that most of these suppliers are upstream for Nike and Adidas, and their resources are monopolized by Nike and Adidas. It is almost impossible for domestic enterprises to cooperate with them.

In the eyes of Xu Zhida, deputy general manager of PEAK, this integration process has not been easy, and the opportunity is the crisis that is affecting the whole world.

With the decline of international market demand, the orders of these upstream suppliers have been greatly reduced, giving domestic enterprises an opportunity to cut in.

Xu Zhida said that after the integration of microfiber suppliers, PEAK will take advantage of this opportunity to integrate the suppliers of vamp and sole to form an efficient industrial chain with PEAK as the center.

We can say that the integrity of the industrial chain is the advantage of Quanzhou enterprises. However, the industrial chain formed through cooperation is often unstable, and in many cases it is only a loose alliance.

"In the case of declining foreign demand and reduced orders, vertical mergers and acquisitions will bring new developments to the development of Quanzhou's industrial chain."

Professor Chen Jinlong thinks so.

Quanzhou has a complete industrial chain, but the scattered manufacturing factories make the homogenization competition in the same production link more intense.

"If the leading enterprises in the industry can vertically integrate enterprises in the industrial chain, they will not only help themselves peel off the production links, but also grasp the advantages of the industrial chain, and enhance the risk resisting ability of the enterprises and even the whole industrial chain."

"The integration of industry chain is a process of eliminating the false and preserving the truth and going to the bad." enterprises with unreasonable industrial structure and lack of competitive advantages will be forced out, and strong enterprises will become stronger and stronger.

When the economic situation is good, we all want to fight alone. When faced with difficulties, we will realize the importance of the alliance. The financial crisis actually provides an opportunity for the integration of the industry.

In the next two years, there may be an upsurge of mergers and acquisitions among enterprises in Quanzhou.

Professor Chen Jinlong said.

Wang Xiaonan: editor in charge