Ed Hardy Valuation Increased By Over 300% To Explain The Logic Of Diversification

Nicky Wu EdHardy and Liu Shishi recently appeared in the airport wearing a pair of sweethearts.

Two people wore Ed Hardy X striped T-shirt.

Summer looks small and fresh, which is not endorsement. Nicky Wu himself is the principal of this brand.

Speaking of Ed Hardy X, perhaps many people are not familiar with it. This is the sub card launched by Ed Hardy last year, aiming at a new generation of young consumer groups.

As a leader, Nicky Wu appeared in Shanghai last week and attended the 2019 spring new product conference in Shanghai World Trade Center in Ed Hardy.

As a representative of the trend brand, Ed Hardy shows tattoos in heavy process.

The product is brand specific.

Whether it is a tiger head or a tightly embroidered rose, it is impressive.

Like many trend brands, Ed Hardy has also been sought after by many stars and even invested.

Its early shareholders included China Hongkong film star Carina Lau.

At present, Carina Lau is still the Ed Hardy brand manager.

Although there are many fans in the market, Ed Hardy really enters capital.

The line of sight began in 2016.

Women's clothing listed company, through its subsidiary, Dongming international, bought 240 million 500 thousand stake in the Ed Hardy brand Greater China operation entity, 65% of Hongkong Tang Li International Holdings Limited (hereinafter referred to as Tang Li International), and paid 55 million 500 thousand yuan in June to continue to purchase 15% of its stock.

At present, he holds 80% stake in Tang Li International.

In the past few years, the brand of Ed Hardy has improved significantly, both in brand operation and in performance.

With the rise of the trend culture, the tide group is no longer confined to young people. The age span of their customers is constantly widening.

From the performance point of view, the net profit of Ed Hardy2015 is about 4300 yuan.

In the year of acquisition, this figure has expanded to 140 million yuan.

With the significant increase in performance, Ed Hardy brand operating entity Tang Li International valuation has also increased by more than 300%.

Public information shows that in January 2016, when it first acquired the 65% stake in Tang Li International, its overall valuation was 370 million yuan.

In the 7 years of 2017, the company announced that it would further acquire 10% equity interest of Tang Li International on the basis of 80% holdings, with an overall valuation of 1 billion 755 million yuan.

In less than two years, the overall valuation of Tang Li International increased by 374.32%.

In this regard, Ed Hardy CEO Zhou Cheng said that the main reason is Ed Hardy brand strategy and

The strategy is more successful, and has a good synergy effect with the brand strategy, brand operation and channel management.

Lan Di said that Ed Hardy is in line with the standard of George's in all aspects, and the whole negotiation time is very short. From the angle of cooperation, we can provide support for Ed Hardy such as funds and channels.

The addition of Ed Hardy brand is an important complement to the company's existing brand lineup.

In fact, for mergers and acquisitions, the song has always had clear logic and standards.

The five principles are summarized as follows: first, the founder and core team of the M & A is trustworthy; two, there is a clear synergy between the proposed acquisition target and the company's existing brand; three, the core management team has independent operation capability; four, there is room for growth in the core category business, and it is expected to become the dominant player in the field; five is the reasonable valuation of the proposed acquisition target.

"In the future, it will continue to take M & A as a way to cut in, constantly introducing high-end to light luxury positioning brands, enriching the company's brand lineup, and further amplifying the synergy effect."

Blue said.