What Trend Does The Apparel Industry'S Capital Reflect In The M & A Industry?

According to the world clothing and shoe net, we understand "combination boxing" mergers and acquisitions, set up subsidiaries, set up mergers and acquisitions investment funds, horizontal mergers and acquisitions of sub brand categories, and set up joint ventures. The near future clothing Mergers and acquisitions of listed companies continue to invest, and this is not fully combed and scanned, to see what the latest trend of clothing industry capital in the field of M & A investment, behind which reflects the development trend of the industry.

Trend 1: acquisition or sale of assets, "overweight" clothing industry

In the evening of June 5th, Shang win global launched several asset purchase plans. The company intends to buy assets through issuing shares to make a price of 1 billion 698 million yuan, the acquisition of Shanghai billion table, Ningbo Jingfeng and Wu Li Zhu and other three parties jointly hold Shanghai's 100% stake in Chuang Kai, while raising matching funds 412 million yuan.

After the deal is completed, business win global will open a 100% stake in Kellwood Apparel and Kellwood HK through Shanghai. The company said that Kellwood Apparel will have a strong synergy with the world's main subsidiary, global star, in the centralized management of supply chain, centralized procurement and bargaining power to customers. Kellwood Apparel is mainly engaged in fashion women's clothing design and sales, its headquarters is located in Losangeles, and its sales headquarters is located in New York. Kellwood HK will provide supply chain management and centralized procurement services for Kellwood Apparel.

Another major asset purchase plan is the company's $29 million purchase of DAI and its wholly-owned subsidiary CF Holdings and TO Holdings's operating assets portfolio. DAI, a subsidiary of the company that owns 95% of the global shareholding, and its wholly owned subsidiary, intends to purchase the operating assets package of DAI and its wholly owned subsidiary CF Holdings and TO Holdings in cash payment. DAI is mainly engaged in garment design and sales. The company said the acquisition could increase the product. brand To expand the scope of the main business, and use the B2C sales mode and customer database of the underlying assets to increase the sales volume of the original products and enhance the profitability.

Those who have acquired the assets of the "clothing industry" are also selling the assets "focusing" on the main garment industry. In June 5th, Hong Kong shares issued a notice, with its RMB 820 million yuan, will be held by the 60% stake in the red bean real estate spanfer to the red bean group shareholders change business registration procedures have been completed. At this point, Hong Kong shares no longer directly or indirectly hold the equity of red beans.

After the completion of the spanaction, Hong Kong shares will be the former "real estate +". Spin The double main business has been changed to the single business mode centered on the garment industry. In the previous announcement, the company said that the company will concentrate its resources on the development of the garment industry, enhance its competitive edge and cultivate new growth points.

Trend two: acquisition or investment channel resources, enhance channel "control".

In the evening of June 2nd, the Hong Kong stock and MIG International Holdings issued a notice. In June 2, 2017, the company's indirect wholly-owned Quanzhou Tuo Yu Trading Co., Ltd. and Chengdu Jia Shang Garments Co., Ltd. and the company entered into a takeover agreement, and Quanzhou Tuo Yu Trade purchased the distribution channel of Chengdu Jia Shang Garments Co., Ltd. for 49 million yuan. The announcement shows that the distribution channel is for the 53 distribution channels operated in the Sichuan region, which sells children's clothing of the group's "red boy" brand and other assets related to the business. In view of the above purchase agreement, in June 2, 2017, the company, Quanzhou Tuo Yu Trade and Ming Yang Klc Holdings Ltd subscribed an agreement. The Ming Yang Investment Holding Company subscribed the company convertible bonds which did not exceed RMB 34 million 393 thousand yuan in 2019.

The company said the acquisition was in line with the group's business strategy, that is, to provide shopping experience and direct access to consumption patterns, materials and consumer information, thereby enabling the group to enhance its product design, market response and planning. The sales channel will be operated by the group after the completion of the purchase. The group can sell its products directly to the final consumers at the retail price without selling them to the distributor at wholesale price when the sales channels are not owned or operated by the group. The change is expected to bring benefits to the gross profit margin and the pure interest rate of the group.

A shares listed on Saturday issued a notice on June 2nd, said the company's wholly-owned supply chain management subsidiary has been issued by the Shenzhen municipal market supervision authority's business license. Prior to its announcement in April 27th, Saturday, a wholly owned subsidiary will be established to undertake the existing logistics business and expand its supply chain management business. The company said that the electricity supplier channel has become an important part of the enterprise's sales channels. Online shopping has become the daily life habit of consumers. Good logistics experience has become an important reason for consumers to choose the electronic business platform when shopping. An important purpose of establishing a subsidiary is to improve the efficiency of supply logistics, expand new businesses and increase profit growth points.

Trend three: acquisition or investment of sub brands, increase brand category "combination"

Investment or acquisition of sub brand and multi category is a common action of garment enterprises. In the evening of June 2nd, the company issued a joint venture agreement with Xuzhou in June 2nd. It established a joint venture agreement in May 19th. The joint venture company owns 50% and 50% respectively from Xuzhou 100 million and meiden Asia. The joint venture company will mainly engage in sales promotion, marketing, sales and distribution, bearing STEVE MADDEN logo products. According to the current business plan, the joint venture company will open about 150 STEVE MADDEN product sales outlets by the end of 2020.

It is reported that STEVE MADDEN is a fashion shoe brand born in the United States. Its products include men's, ladies' and children's shoes, handbags, wallets, handbags, shoulder bags, shopping bags, backpacks and pouches. By introducing new brands, the company will expand its portfolio of women's shoes and aim at the high-end shoe market. The company believes that the establishment of a joint venture company and the conclusion of a trademark re licensing agreement will enhance the brand image of the brand, and at the same time, it will further expand the business of the high-end footwear market in the mainland.

Another Hong Kong apparel company, Yu Zongfei, issued a notice in June 6th. The company entered into a memorandum of understanding with the seller, Mr. Sang Sheng, and the China Railway holding line Co., Ltd., to acquire the full stake of China net venture (Shenzhen) Limited at HK $80 million. It is reported that Target Corp is mainly engaged in the production and sale of leather products with "Bentley" logo in China, including leather purses, leather bags and leather suitcases. The company said that the memorandum of understanding and the proposed acquisition (if implemented) would enable the group's existing leather jacket products to be expanded to brand leather products, including leather wallets, leather bags and leather suitcases, which could expand the types of products offered by the group.

Trend four: foreign investment in the name of "big consumption"

In the evening of April 12th, Hai Lan's home announced that the company intends to invest RMB 45 million yuan with its own capital to jointly establish the Jiangsu Su Yin Kai Ji Consumer Finance Co., Ltd. with the Bank of Jiangsu Limited by Share Ltd, the Kai Ji commercial bank Limited by Share Ltd and the Shanghai 2345 network holding group Limited by Share Ltd. After the investment was completed, the proportion of Consumer Finance Companies's contribution to the company was 7.5%.

Hai Lan home said that the company intends to participate in the launching of Consumer Finance Companies with its own capital contribution, combining consumer finance with the existing business scenario of the company, providing consumers with diversified financial products and value-added services such as consumer loans, increasing customer viscosity, accumulating user data, better serving the company's main business and enhancing the company's profitability.

Shang win universal announced in May 11th that the company's subsidiary win sports development (Shanghai) Co., Ltd. intends to set up a wholly owned subsidiary of Shanghai win intelligent fitness (Shanghai) Co., Ltd. in Xuhui District, Shanghai (provisional name). The company said the aim is to promote intelligent fitness programs, cut into the market in scenarios, content and products, and create high flow entry. Building "fitness +" ecological remodeling helps to promote the company's big consumption strategy and broaden the company's profit channel.

Trend five: setting up M & A investment fund and implementing "diversification" strategy

In the evening of June 6th, the blonde Rabbi announced that it was planning to set up the Guangdong Canada Medical Investment Center (limited partnership) through a wholly owned subsidiary, Guangzhou blonde Investment Limited, with its own capital of RMB 32 million 300 thousand yuan, and the partners of Guangzhou equity investment limited, Jin Linkang, Wang Miao, Kong Zhiwei and Chen Zengnan. In June 5, 2017, the company signed the partnership agreement of Guangdong Kahn Medical Investment Center (limited partnership). Rabbi investment, as a limited partner (LP) of Canada medical limited, invested 32 million 300 thousand yuan, and subscribed for 60.95% of the total investment of the partnership.

Blonde Rabbi said the company participates in the investment of Canada healthcare partnership. The aim is to expand the strategic layout of the company's industrial chain so as to extend the layout of the company's industrial chain to the field of maternal and infant health and speed up the layout of the company's maternal and child health industry.

King Mu continued to invest in the "cultural industry". In April 11th, the king of Tibet announced that the nine party investment limited liability company of Shanghai, a wholly-owned subsidiary of the company, signed the "partnership agreement of Hangzhou Mu Hua equity investment fund partnership (limited partnership)" with the Mu Hua Jin Yu equity investment management partnership (limited partnership) in April 10, 2017. It intends to participate in the establishment of the Hangzhou Mu Hua equity investment fund partnership (limited partnership) and invest in cultural education and its derivative industries and emerging industries.

The scale of the fund is expected to be RMB 1 billion yuan, of which nine Sheng investment is a limited partner of the fund, and the proposed amount is 100 million yuan, the announcement said. The investment scope of the fund includes, but is not limited to, cultural education and its derivative industries and emerging industries. This project is intended to realize the investment layout of the company in the field of cultural industry, so as to realize the development strategy of the company to create an elite lifestyle group.

The pace of mergers and acquisitions of garment enterprises will further accelerate.

Since 2017, the garment industry's capital investment and M & A activity has not been reduced, and there may be some further acceleration. There are several reasons behind it. First, the spanformation degree of the garment industry has been deepened, and the industrial structure has been accelerating. Typical cases such as BELLE international privatization, some "old" clothing listed companies, or restructuring, splitting, leaving or focusing on the garment business, such as the clothing business split by Shanshan stock, will be listed in Hong Kong, and the red beans will sell the non clothing assets to the big shareholders, the red bean group.

On the other hand, the capital market policy is also playing an important role in promoting the growth of IPO. For example, the speed of issuance of the IPO is accelerating. After some IPO or IPO, there is also a plan or anticipation to accelerate the spanformation and upgrading of the capital industry through the capital platform, and investment and M & A is one of the important means. In addition, the financing of the merger and reorganization is not subject to the influence of the 18 month restriction, which may make the demand for refinancing of the garment enterprises into M & a demand.

On the other hand, the market environment of the whole industry is also changing. For example, the development of the electricity supplier has led to the change and upgrading of the channel. Consumption upgrading and plate rotation have made mother and child and children's clothing the popular fried chicken in the clothing segmentation industry, and the emergence of some new consumption demands and consumption scenarios.

Under the influence and promotion of these environmental factors, as a part of traditional industries, many garment listed enterprises use capital platform to accelerate the spanformation and upgrading, industry integration and industrial chain expansion through investment, mergers and acquisitions, restructuring, and promote their own spanformation and upgrading strategy. Some of the recent mergers and acquisitions of apparel listed companies, such as mergers and acquisitions or investment channel assets, investment in the name of "big consumption" upgrading of consumption, horizontal mergers and acquisitions of multi brands, mergers and acquisitions hotspots subdivision of industry categories, and "layout" in the industrial chain upstream and downstream, generally reflect the above industry development trend. With the further development of capital market, consumer market and industry itself, more investment and merger events will emerge in garment industry, and accelerate the further integration, differentiation and reorganization of garment industry.

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