Cross Border Diversification In 2018 Garment Enterprises' Mergers And Acquisitions Investment "Return To Main Business"

Compared with previous clothing companies many cross-border diversification, pursuit capital market The investment of M & A on the hot spot concept seems to be a part of this year's mergers and acquisitions of many garment listed companies. The reasons for M & A investment are all striving to link up with the main business, while showing some new trends and characteristics.

Brand acquisition investment: more overseas brands become "prey"

This year, more clothing enterprises have referred to the "internationalization" strategy in their business plans, or trying to go out, or to introduce more overseas brands. The acquisition of overseas clothing brands has become "commonplace" for local clothing enterprises, and even become a vague trend.

In April 11th, La Natsu Bell Announced that the company's wholly-owned sun LaCha Fashion I Limited intends to invest 20 million 800 thousand euros to buy VIVARTE SAS held NafNaf SAS 40% stake. Statistics show that NafNaf SAS was founded in France in 1973, mainly engaged in women's clothing products and accessories sales. The company has 494 stores in France, Spain, Belgium and Italy, of which 216 are France and 278 overseas. La Natsu Bell By investing in international clothing brands, it will enrich the company's brand portfolio and promote the company's multi brand strategy, enabling the company to share product planning, fashion design, supply chain management, terminal channels and other resources with the international brand, and enhance the feasibility of NafNaf SAS expanding the Chinese market. In June 29th, La Natsu Bell announced that the company had completed the acquisition.

On the evening of May 2nd, Semir According to the announcement, the company intends to acquire SofizaSAS 100% equity and creditor's rights through its wholly owned subsidiary Semir International Group (Hongkong) Limited, with its own capital of about 110 million euros (about 844 million yuan), so as to achieve the purpose of acquiring all assets of Kidiliz group. The announcement shows that Kidiliz group was founded in 1962 by Josette and RogerZannier in Saint-Chamond, a southern city of France. After 56 years of development, Kidiliz group has gradually developed into a middle and high end in Europe. Children's wear industry The leading company has 10 own children's wear brands and 5 authorized business brands, offering products from the middle to the high-end, from newborns to teenagers, and multi age differentiated products. This is the second phase of overseas investment in Semir apparel this year. In March, the company announced that it has reached long-term strategic cooperation with The Children 's Place, the most popular children's clothing retailer in North America.

Category M & amp; acquisition investment: pursuit and main business have "synergy effect"

The development mode of multi brand and multi category clothing enterprises is still unchanged, which is determined by the needs of consumer groups, but the degree and intensity of diversification of each enterprise are different. In the merger and acquisition of the new category, the garment enterprises pursue the synergy effect with the main business on the basis of the merger and acquisition, and integrate into their brand "ecosphere".

In January 29th, Taiping bird announced that it would invest 23 million 250 thousand yuan in its own capital to invest in Taiping nests. After the completion of the capital increase, the company will hold a 51% stake in Taiping bird nest. As the controlling shareholder Taiping bird group holds 100% stake in Taiping bird nest, the spanaction constitutes a related spanaction. Statistics show that the main products of Taiping bird nest include home textiles, aromatherapy, food and Kitchenware and so on, belonging to the household industry. As of December 31, 2017, Taiping bird nest has 6 self operated stores, with a total area of 800 square meters. Taiping bird also said that the Taiping bird nest will keep up with the company's clothing brand style and develop a series of cooperative products, and jointly set up a unified style store with the company's clothing brands in shopping malls, shopping centers and other venues.

In June 4th, the Sino submarine shares announced that the company intends to sign a framework agreement on equity purchase with Chen Guoping, Li Tao, and Liu Zhuzeng of azure sports shareholders, and intends to acquire shares of blue sport not less than 55.33% with the company's own funds. Statistics show that azure sports is a new three board listed company. Its main products are swimming articles such as goggles and swimming caps. In 2017, the blue blue sports business revenue reached 54 million 990 thousand yuan, achieving a net profit of 5 million 683 thousand yuan. The company said that the success of the acquisition will improve the company's industrial chain and enrich the company's product line, which is conducive to playing the resources and advantages of the company in the field of diving equipment. In July 31st, the company announced that it intends to acquire 100% stake in Foshan quark brothers Technology Co., Ltd., which is mainly engaged in R & D, production and sales of hovercraft. If the purchase is successful, it can enrich the company's product line, and it can also have synergistic effect with the existing products of the company,

Channel mergers and acquisitions Investment: hand in hand with Internet giant

Over the past two years, especially since this year, the Internet giants represented by Tencent and Alibaba as strategic investors have repeatedly acquired entities under the merger and acquisition of shares, which has become another form of integration of industrial capital outside the traditional private equity investment institutions. As a typical traditional industry, the garment industry is naturally "the first to bear the brunt". This way of cooperation between Internet enterprises and clothing entities can be seen as a new feature of the channel of mergers and acquisitions of garment enterprises.

On the evening of February 2nd, Hai Lan's home announced that the Rongji International Limited, the controlling shareholder of the company, signed a share spanfer agreement with the Shenzhen Tencent Pu and limited partnership. After consultation, Rongji intends to spanfer about 239 million shares of shares to Tencent Pu and 10.48 yuan / share price. The total spanfer price of the shares is about RMB 2 billion 500 million yuan, and the spanfer shares account for 5.31% of the company's current total share capital. On the same day, Jiangyin Hai Lan Home Investment Co., Ltd., a wholly owned subsidiary of Hai Lan home, Linzhi Tencent Technology Company Limited and Ningbo Zhixin investment management partnership signed the "framework agreement on CO sponsored industrial investment fund" in Shenzhen. The investment orientation and purpose of industrial investment funds are to invest in apparel related industry chains, excellent clothing and apparel brands, garment manufacturing companies, and strengthen the multi brand, multi category and multi-channel layout of the company. The target size of the fund was set to RMB 10 billion yuan.

Like Hai Lan's home, the city beauty also announced a strategic partnership with Internet companies and introduced strategic investors, and announced a joint fund with Jingdong. In April 26th, the city beauty announced a total of 121 million shares to Windcreek (Jingdong indirect wholly owned subsidiary), image structure investment (Tencent wholly owned subsidiary), vip.com and Quick Returns (wholly owned subsidiary of China Rui Holdings), with a subscription price of HK $4.2, placing the shares at 5.67% of the issued share capital and 5.37% of the issued share capital after the expansion. The placement is net HK $509 million, which will be provided by the company as a group's sales and distribution channel reform, potential merger, acquisition and cooperation projects and general liquidity purposes. In February 7th, the city beauty announced that the company's wholly-owned Affiliated Companies Guangdong city beauty, Jingdong Affiliated Companies Affiliated Companies century and Li Guocheng made major provisions. According to the terms, the target size of the cooperative fund is expected to be RMB 1 billion yuan, and the investment target is mainly related to China's domestic and foreign companies involved in body clothing brands, upstream and downstream industries and related peripheral industries. City beauty says it hopes to use its experience in the industry of personal clothing products to carry out industrial funds which mainly invest in related industries at home and abroad for use in industry mergers and acquisitions and resource integration suitable for group businesses.

Industry chain mergers and acquisitions Investment: climbing to more high-end market

Over the past few years, garment enterprises have expanded to the upper and lower reaches of the industrial chain, especially upstream, which has become an increasingly obvious trend. For clothing brand enterprises, it is to expand to more high-end market areas, to "spiritual consumption", "high-end consumption" and "service consumer market". This phenomenon is more obvious in the sports apparel market. We mentioned before that the investment of "Pan sports" in clothing enterprises is warming up, and sports clothing brand enterprises and retail enterprises can expand to the market of high-end or service consumption through M & A investment, which can be regarded as a typical example.

In May 28th, PEAK sports CEO Xu Zhihua announced in a letter to all PEAK colleagues that PEAK sports will acquire OZARK, an outdoor sports brand. Data introduction, OZARK is a brand created by Swiss outdoor sports enthusiast Hans Shallenberger in 1996. It entered the Chinese market in the same year. It is a partner of China mountaineering team. It has operation and production base in Hongkong, Shenzhen, Beijing, Shanghai and Hubei. OZARK provides outdoor products such as clothing, shoes, backpacks, equipment accessories and other outdoor products for mountaineering, rock climbing, skiing, hiking, cross-country running and other outdoor sports. Xu Zhihua said PEAK had no layout before the outdoor field and has been looking for the right brand. Next, PEAK will make use of its experience in production management and marketing, combine with OZARK's technology and customer resources, and aim at the 2022 Winter Olympic Games in Beijing to enter the ice and snow field, so that OZARK can maintain the international brand position of outdoor sports and expand the market share of high-end outdoor sports products.

In March 30th, Sanfo announced that the company had earned 34 million of its own capital and gained 31.1927% of the equity interest in Shanghai's Culture Development Co., Ltd. After investment, the company will become the second largest shareholder of Shanghai music. According to the information, Shanghai smart Culture Development Co., Ltd. is a outdoor park operation and camp education and training company with the characteristics of outdoor, ecological, entertainment, education, parent-child and so on. At present, Shanghai's Chengdu has 300 acres of land, with the theme of "squirrel tribes" as the theme of the parent-child Holiday Park. This investment can be seen as an action taken by Sanfo as an outdoor retailer in the field of service consumption.

Hua Shang observation: Garment Enterprise Mergers and acquisitions investment "seek stability" in the development, "compliance" under the return.

So far this year, apparel listed companies still have many investment activities in mergers and acquisitions. However, compared with previous years of frequent cross-border investment behavior of garment enterprises, most of the investment and acquisition of garment enterprises this year is still related to the main business, at least on the grounds of mergers and acquisitions. fashion The related market such as brand, category, channel, industry chain expansion in consumer domain is making an issue.

The reason may be related to the comprehensive environment of the market. From the macro economy, China's economy is still in the stage of deleveraging, which may lead to the acceleration of the survival of the fittest in the market. "Stability" should be the main keynote of the development of the entity traditional industries, and from the industrial market, under the background of consumption upgrading, clothing At present, the industry is generally in a stage of recovery and warmer. Garment enterprises should accelerate the expansion and occupy the market in the main industry, upgrade the brand, upgrade channels and expand the industrial chain.

Another factor is capital. market Environment, whether starting financing or refinancing, including the review of mergers and acquisitions, are carried out under the "strict" tone. We can see that this year's clothing listed companies received regulatory inquiries, including fines, the termination of reorganization and other news is also heard. From the clothing enterprises themselves, some enterprises have found that the pace of crossing too quickly is too much, and the success rate and rate of return of this practice may not be very high, so they consider shrinking the front line and "returning to the main business". Generally speaking, seeking development in "stability seeking" is the main keynote of investment in mergers and acquisitions of garment enterprises.