2017 Is Known As The Year Of Merger And Acquisition. The Gains And Losses Of Quanzhou'S Clothing Brand Mergers And Acquisitions

In 2017, the industry was called "the first year of children's clothing market outbreak". Clothing enterprises' attention to infant clothing reached an unprecedented height, and spring enterprises were no exception.

Absorbing high-quality assets and revitalize brand resources is also an important demand for purchasing enterprises in danger. In December 25, 2017, Quanzhou Dafa Real Estate Investment Co., Ltd., which was held by PEAK, won 100% stake in flag King (China) Textile Garments Co., Ltd. and Quanzhou Baolong Garment Development Co., at a price of 97911882 yuan, marking the substantial success of the reorganization of the flag king company. This is also the first case of bankruptcy reorganization in Quanzhou. Xu Jingnan, chairman of PEAK group, said that taking part in the auction was considered by the company's own development and that the price was reasonable. "Land, factory buildings and other fixed assets are all reserves for the company's future development needs."

　　 Peak Whether the future will take the road of multi brand parallel will cause the industry's conjecture. PEAK sports CEO Xu Zhihua has said before, "multi brand strategy is one of our options. PEAK will definitely become a group and a pluralistic future. Of course, the brand level is not necessarily PEAK, but there may be other changes. The definition of PEAK is for different groups of people. There may be different brands in the future. Moreover, the most important way of A share and capital listing in the future is capital acquisition, and there will be some opportunities in the future.

Failure of mergers and Acquisitions: great birds dream of Wei Kang fitness

In order to facilitate the acquisition of a 100% pound stake in Wei Kang's 2 billion 700 million yuan high price, the great bird gave up two other investments in the sports industry chain: in December 22, 2016, the company announced that it would spanfer the stake of Star Technology 45% to 100 million yuan. In December 30, 2016, the board of directors of the company passed the cancellation of the insurance company.

You are a brand of the old Jinjiang sports shoes and clothing brand. In recent years, the single brand has fallen into a predicament of a weak growth. It is trying to find a breakthrough through a series of mergers and acquisitions in the capital market. Although the acquisition of the famous shoe store and Jerry bank has made up for the short board of its terminal channel to some extent, it has brought about an increase in revenue. However, the declining profitability has imply that this path of spanformation through capital investment is far more difficult than expected.

Since 2014, the birds have begun to spanform and upgrade, and put forward the goal of "sports industrialization group based on the manufacture of sporting goods and clothing, and the coordinated development of various forms of sports industry".

Over the past two years, the third tier sports shoe clothing company has attracted the attention of the industry through a series of mergers and acquisitions. In January 2015, the expensive bird bought 240 million yuan into the old sports portal tiger sports. In July of the same year, it established the capital of mobile capital with the scale of up to 2 billion yuan. It was said to be the largest sports industry fund in China, and 1 billion yuan was invested by the noble bird. In July 2015, it invested 20 million euros in Hongkong subsidiary to invest in Spanish football brokerage company The Best Of Your Sp3orts.S.A. In June 2016 and August, you bought Jay and shoes store.

In 2017, the merger of the birds and birds caused the industry to shake. In March 2017, the bird announced that it would buy a 100% stake in Wellcome fitness (Welsh fitness company) at a high price of 2 billion 700 million yuan, but the deal ended in early September 2017. According to the insiders, 2 billion 700 million of the spanaction price exceeds the 2016 turnover of the precious birds. With the achievements of the precious birds today and the fact that their main business is declining and the investment can not be realized in the short term, it will be questioned whether investors can bear the financial pressure and subsequent operational risks brought about by the Wellcome fitness. Indeed, for the reasons for the termination of the takeover, the bird said in the announcement, "the two parties can not reach agreement on key terms such as spanaction consideration and payment methods."

Some analysts believe that in order to contribute to this heavy acquisition, the great bird gave up two other investments in the sports industry chain: in December 22, 2016, the "bird bird announcement" was intended to spanfer the shareholding of Star Technology 45% to 100 million yuan. The latter was assigned to the "interconnected sports game quality content provider" in the layout of the birds and birds. In December 30, 2016, the board of directors of the listed company cancelled the holding company's insurance, and then only 8 months later.

These acquisitions appear to be aimless mergers and acquisitions, showing the desire of the traditional sports brand to seek breakthroughs in the whole sports industry chain. However, when the main business needs to be improved, it is not a safe signal to enter the field of sports brokers, event sponsors, sports insurance, sports games, sports fitness and so on without any experience and relatively long investment return cycles.

In addition to these risky cross-border mergers and acquisitions, the AND1 also expanded the existing sports brand matrix through two acquisitions. They bought basketball equipment brand AND1 and PRINCE Sports, LLC, respectively, in October 2016 and September 2017.

Such acquisition is also the main strategy of all major domestic sporting goods suppliers, and Anta's operation is relatively mature. Lining also had earlier layout in many brands, but the result was far less than expected.

In contrast, the expansion of sports in the field of sports equipment shows that the space is narrow. AND1 and PRINCE belong to the "niche" field.

AND1 had no official licensed brand operators in Greater China, and the products sold on the terminal market were mixed. There is no small risk for those who lack experience in international brand operation. Moreover, compared to the heyday, AND1 is no longer an opponent of Nike and Adidas this morning. Its brand value and market share can not compete with the giants.

In addition, the tennis lifestyle, which advertised the middle class lifestyle, is also a minority in China. It seems that it is hard to see positive factors for the investment of PRINCE.

Successful merger: fierce merger and acquisition

Quan enterprises Anta sports purchased Xiao Xiao cattle, PEAK led the restructuring of the tick Tat and seven wolves to buy the old Buddha; the domestic clothing enterprise Hai Lan's home became the second largest shareholder of Ying Shi baby, and the women's clothing brands such as Lanzi stock and Jiangnan cloth dress had made efforts to make children's wear plates.

In October 20, 2017, Anta sports announced in its official website that its wholly-owned Affiliated Companies has completed its 100% interest in acquiring KingKow business, including trademarks. It is reported that KingKow was founded in 1998. It is a children's clothing brand located in the middle and high end. It specializes in designing and selling baby clothes of 0 to 14 years old. As of the end of September 2017, there are 81 outlets in mainland China, Hongkong, China, Taiwan and the United States. Ding Shizhong, chairman and chief executive of Anta sports, said, "after the Chinese government announced the implementation of the" two child policy ", it is widely expected that the growth of children's shoes and clothing market will accelerate, so we are optimistic about the development potential of children's clothing. At present, Anta children's clothing has gradually grown into an important driving force for Anta's growth. After the success of the test, Anta has intensified efforts to open up the high-end market for baby. In 2015, Anta launched the FILA KIDS, a children's clothing brand located in the high-end market. According to Anta's earnings report, Anta retail sales of children's products increased by more than 30% in the first quarter of 2017. As of June 2017, Anta's independent children's wear shops increased to more than 2100, compared with 228 in 2009, nearly 10 times. According to the insiders, Anta will brand the children's clothing brand, and will strengthen the business capacity of the high-end children's clothing, and constantly improve the market segments of children's clothing.

Coincidentally, in December 24, 2017, Quanzhou longitudinal Investment Co., Ltd., which was led by PEAK, made the real estate, movable property and "tick Tett" trademark right of Green group's two phase Industrial Park in the East China Sea in 64 million 500 thousand yuan. Green group, as a leading enterprise in the association of children's wear in Feng Ze District, has been in business trouble for many years due to its failure to be listed and poor macroeconomic environment in recent years. After more than two months of efforts, it was led by Vice Chairman of the CPPCC, chairman of the Federation of industry and Commerce and general manager of Fujian PEAK group, and formed a strategic investor, Quanzhou longitudinal Investment Co., Ltd., which was composed of entrepreneurs of the Federation of industry and Commerce and children's wear Association. The business reporter inquired the enterprise credit information system, found that the registered capital of longitudinal investment was 100 million yuan, which was jointly funded by 2 company shareholders and 5 individual shareholders. Among them, Chen Youmin and Fujian PEAK Group Limited contributed the largest proportion, 20%. Quanzhou longitudinal Investment Co., Ltd. will work hard to help Green group get out of the difficult position in the spirit of protecting the children's clothing enterprises and protecting the brand of "ticdian" brand. It is estimated that the total amount of the restructuring amount will be accumulated to RMB 140 million yuan.

In recent years, children's wear market has become an attractive cake. The research report released by the foresight Industry Research Institute pointed out that the scale of children's wear market in China has been expanding in recent years, and the sales of children's clothing in China in 2016 is about 145 billion yuan. It is estimated that the size of children's clothing market is expected to exceed 160 billion yuan in 2017, and the growth rate will further improve. Looking at the country, the men's clothing brand Hai Lan's home is no longer satisfied with being a "man's Wardrobe". It turns its attention to the field of infant clothing, becoming the second largest shareholder of Ying's baby.

Another trend of garment industry in 2017 is that the development trend of light luxury brands continues upward, which makes the old brand clothing listed enterprises unable to sit still. For example, Quanzhou old men's seven wolves announced in August 2017 that they would invest about 80.1% of the equity interest in KarlLagerfeldGreaterChinaHoldingsLimited (hereinafter referred to as KLGC) and the corresponding shareholder loans at a cost of about 320 million yuan, and increase capital for their domestic operations after completion of the equity spanfer. The core asset of KLGC is KARLLAGERFELD's permanent, irrevocable, exclusive and redistributable trademark right to use in the Greater China region. The brand is a light luxury brand from Paris, France. Its founder is known as the "Lord of Buddha" in the fashion industry.

The reason for the acquisition of the seven wolves is that the brand of light luxury designers has great potential in China. Seven wolves said that KARLLAGERFELD is one of the strongest IP in fashion industry. Brand positioning is fashionable and light luxury market. It has a complete product line and good brand extension. At present, it is in a gold expansion period overseas, with a compound growth rate of 30%. The rising global heat can further promote the development of Greater China business.

Behind the big buying and selling of clothing companies is the revival of the industry and the enterprises' presence. Merger Gradually mature. Statistics show that in the first half of 2017, the garment industry showed an obvious trend of recovery. Enterprises above Designated Size realized a total revenue of 1 trillion and 149 billion 584 million yuan, an increase of 7.97% over the same period last year, and the total profit was 65 billion 450 million yuan, up 11.95% over the same period last year. At the same time, while some companies were doing better, such as Anta's frequent market capitalization, Anta's market value exceeded 100 billion Hong Kong dollars in 2017.

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