La Natsu Bell Spent 270 Million To Acquire The Remaining Shares Of French Brand Naf Naf.

In May 22nd, La Natsu Bell, a women's clothing group in China, announced that the group's indirect acquisition of the French clothing brand (thematic reading) and the remaining 60% stake in Naf Naf were completed by acquiring 60% stake in LACHA APPAREL II S RL RL, and Naf Naf will become the Affiliated Companies of Affiliated Companies.

At the end of June last year, La Natsu Bell bought the Naf Naf 40% stake from VIVARTE SAS with 20 million 800 thousand euros.

In 2017, the La Natsu Bell clothing Limited by Share Ltd of Shanghai successfully completed IPO for the first time, raising about 1 billion 640 million yuan.

In 2018, La Natsu Bell began to operate the acquisition of Naf Naf, which is also the first acquisition object after La Natsu Bell's listing.

Before the acquisition, that is, in 2017, La Natsu Bell's operating income increased by 5.24% to 8 billion 999 million yuan, a record high, and the net profit attributable to shareholders of listed companies dropped by 6.29% to 499 million yuan.

At that time, women's clothing was the main hero of La Natsu Bell's achievements.

La Natsu Bell's Naf Naf is also in line with the style of La Natsu Bell's young women's dress. Its products are loved by female consumers aged 25 to 30 years in a concise and lively design style. They have 494 retail outlets in France, Italy, Spain and Belgium.

However, after listing in September 2017, La Natsu Bell began to rely on the rapid expansion of financing. As of December 31, 2018, the number of stores was as high as 9269.

The surge in stores did not generate high income for La Natsu Bell.

La Natsu Bell's business income (gross law) was 10 billion 176 million yuan in 2018, down 2.58% from the same period in 2017, and net profit of -1.60 billion yuan, down 132% from the same period last year.

Rapid expansion and steep decline of performance will inevitably exacerbate financial pressure.

According to public data, Naf Naf lost 7 million 700 thousand euros in the fiscal year ending August 31, 2016 and a net profit of 100 thousand euros as of the fiscal year August 31, 2017.

In accordance with the relevant agreements to acquire Naf Naf, the completion date of the paction will be extended to July 1st. The buyer must pay the sum of 35 million 340 thousand euros or 270 million yuan to the custody account immediately after the completion date of the bank wire pfer immediately after the completion date. In order to ease the financial pressure, La Natsu Bell chooses to make loans to a financial institution independent of the company and its related parties and does not exceed 38 million euros, or about 290 million RMB yuan.

In the case of increased capital burden and acquisition of deficit companies, La Natsu Bell will face a severe test.

The next step of La Natsu Bell's acquisition of Naf Naf will also become the focus of continuous attention.