What new trends or new trends can we find out from the M&A events in the local apparel industry in the first quarter?
Judging from the situation in the first quarter of this year, almost every month, news about the investment and mergers and acquisitions of clothing enterprises will be revealed. Many clothing companies are increasing their horsepower and continue to expand the industry chain horizontally and vertically through mergers and acquisitions. It can be said that the investment industry's investment in mergers and acquisitions from the last year has continued to be the same, and the momentum is not diminished. And from the M&A events in the local apparel industry in the first quarter, what new trends or new trends can we find?
Senma Apparel and Kidiliz Group Joint Venture
On January 8, Senma apparel announced that the company intends to sign a "joint venture contract" with Kidiliz Group, jointly investing in the establishment of a joint venture company, Happy Chestnut (Shanghai) Co., Ltd., and promoting the brand of Kidiliz Group and selling its products by the joint venture company. Develop related businesses. The registered capital of the joint venture company is 30 million yuan, and Senma apparel contributes 21 million yuan in cash, accounting for 70% of the registered capital. Kidiliz Group contributes 9 million yuan in cash, accounting for 30% of the registered capital.
According to the announcement, Kidiliz Group is the leading player in the high-end children's wear industry in Europe. It is located in Paris, France. It owns 10 self-owned children's wear brands and 5 authorized business brands, providing mid- to high-end positioning, from newborn to adolescents. select. The company intends to jointly invest in a joint venture with the Kidiliz Group, and the joint venture will promote the brand of the Kidiliz Group and sell its products to promote the development of its business in the domestic market. Senma Apparel said that after the completion of the acquisition, the company will become an important player in the global children's wear industry, with a portfolio of children's wear brands from the public to the high-end, with market entry and operation capabilities in major markets in Europe and Asia as well as other international markets. Have a global supply chain layout.
Blonde Rabbi works with Israeli and Dutch maternal and child brands
On January 10th, the company’s apparel cotton and daily necessities brand listed company, Rabbi, issued two announcements, announcing a cooperation agreement with the Israeli O8 maternal and child brand toiletries series and the Dutch Umee feeding series. According to the agreement, the blonde pulls It is responsible for the brand promotion, sales and supporting after-sales service of the full range of toiletries under the O8 brand in Israel and the full range of Umee products in China, and becomes the exclusive authorized manufacturer and distributor of these two brands in China. The company intends to establish a joint venture with the two brands to inject brand trademarks and patents and intellectual property into the joint venture to expand sales in China and the global undeveloped market.
According to the announcement, O8 ISRAEL LTD, which belongs to the O8 brand of Israel, was established in 2013. It has the technical advantage in the functional research and development of maternal and child care products. It is the first in the world to apply the Dunaliella salina from the Dead Sea to maternal and child care products. The owner of the invention patent. Right View Limited, a subsidiary of the Umee brand in the Netherlands, has an advantage in the design and development of bottle and feeding supplies, especially for the upgrade of the anti-flatulence of the bottle series. Blonde Rabbi said that the introduction of the Israeli O8 brand and the company's existing Beberabi infant care brand formed a synergistic complementation effect, the introduction of the Dutch Umee feeding series products and the company's existing maternal and child supplies series to form a synergistic complementary effect, will Gradually realize brand diversification and internationalization, and cooperate to broaden the product line of the company's brand of care and maternal and child care products, enrich the company's product categories, and increase the company's profit growth point.
Shandong Ruyi acquires Invista apparel and premium fabrics business
On January 31, Invista, a US polymer and fiber supplier, announced that it has sold its apparel and premium fabrics business, one of the company's four business segments, to a subsidiary of China's Shandong Ruyi Investment Holding Group. Upon completion of the transaction, the US Leica Group will be newly established, which means that it is the controlling shareholder. The US Leica Group will operate independently, maintaining its unique positioning, corporate vision, development strategy and organizational structure. Ruyi and Invista's original shareholder, Koch Industries Group, will continue to work closely together to assist and ensure the smooth transition and handover of the post-transaction business.
Invista is one of the world's largest manufacturers of chemical intermediates, polymers and fibers. Headquartered in Wichita, Kansas, USA, Invista has more than 50 branches, offices and factories worldwide. With the research and development of nylon, spandex, polyester fiber and special materials, the products are widely used in clothing, carpets, car airbags and other daily necessities. The Invista business involved in this transaction includes the fiber and brand portfolio of Invista apparel business, all relevant technical, operational, business and functional staff in relevant production plants, R&D centers and sales offices worldwide. Invista retains its nylon, polyester, polyol and technology licensing businesses and related brands and continues to license the technology on a global scale.
Fosun Group acquires Belgian International Gemological Institute
Yuyuan Group, a fashion platform of Fosun Group, recently announced that it has completed the acquisition of the International Gemological Institute of the International Gemological Institute to accelerate the industry and global presence in the diamond industry.
Founded in 1975, IGI is headquartered in Antwerp, Belgium. It is a renowned gemological training and jewelry appraisal organization with 23 laboratories and gemological institutes worldwide. In addition to the identification of gemstones and diamond jewelry, IGI is also known for its gemological academy. The Gemological Institute offers courses in fine diamonds, rough diamonds, colored stones, pearls and retail support.
Annel's capital increase Xinyu baby
On February 14, Annai issued a notice saying that the company's board of directors reviewed and approved the “Proposal on Foreign Investment and Capital Increase of Shenzhen Xinyu Baby Clothing Co., Ltd.”, and agreed to increase the capital of Xinyu Baby by cash of 24 million yuan. Xinyu Baby has a newly added registered capital of RMB 2.5 million. After the capital increase is completed, the company will hold a 20% stake in Xinyu Baby.
Xinyu Baby has Sunshine brand Sunroo brand business, core personnel, trademark rights, patents, domain names and other intangible assets, and independently operates the Sunroo brand. According to Annai, this foreign investment is conducive to nurturing the company's new profit growth point and enhancing the company's market competitiveness and profitability. Sunshine Sunroo brand has a certain brand awareness and reputation in the baby market, and can form synergy with the company's baby products. The endogenous growth space of the An Nai brand is relatively high, so the company will still focus on the brand of Annai. In terms of brand expansion, the company considers a brand that can complement each other with Anaier and has a certain reputation and can achieve synergy with Annai. .
Jiu Muwang invests in Maison Kitsuné
On February 15th, Jiu Muwang signed a cooperation agreement with Kitsune France to jointly establish a joint venture company, Little Fox (China) Co., Ltd., to carry out Maison Kitsuné brand and Kitsuné brand clothing, accessories, bags and bags in mainland China, Hong Kong and Macau. The business of cosmetics and perfume products. Jiu Muwang invested 76.5 million yuan to hold 50% of the joint venture company; Kitsune intends to hold 50 joint ventures in the business area including but not limited to clothing, accessories, bags, trademarks other than coffee, perfume and cosmetics. % equity. Jiu Muwang said that the company will implement a “platformized, multi-brand, all-channel” strategy around the main garment industry, and build a quality platform, a fashion quality platform and a personality trend platform. The company's establishment of a joint venture company can enrich the brand matrix of the company's fashion quality platform, and the company will help the Kinsuné brand to quickly open up the Chinese market.
The logo is a small fox. The Kitsuné brand was founded in Paris, France in 2002. It consists of three series: the seasonal Maison Kitsuné, the classic Parisian Maison Kitsuné Parisien, and the neutral art design ACIDE Maison Kitsuné. The Maison Kitsuné brand has 17 independent stores and more than 400 retail stores worldwide, and is sold on e-commerce platforms such as Endclothing, Matches Fashion and Ssense. As of March 2018, Kitsuné France had a revenue of 18.31 million euros and a net profit of 950,000 euros. The Maison Kitsuné ready-to-wear collection accounted for 90% of the revenue, and the rest was the income of the music label and coffee shop Café Kitsun.
珂Leier acquires Keen Reach
On March 25, the company announced that it will acquire the entire issued shares of Keen Reach from Apex Noble Holdings Limited at a price of HKD 2.39 billion (approximately RMB 2.05 billion), which is an overall assessment given by the evaluation agency. The value is 10% discount, of which HK$500 million is paid in cash, and the rest is paid by the listed company. The price is 9.5 HKD per share, and a total of 198 million new shares are issued, accounting for 29.01% of the enlarged total share capital. Upon completion of the acquisition, Keen Reach will become a wholly-owned subsidiary of 珂莱蒂尔, whose performance, assets and liabilities will be consolidated into the group's accounts, and 珂莱蒂控股有限公司 will be officially renamed Winner Fashion Holdings Limited.
Keen Reach is a company incorporated in the British Virgin Islands with limited liability and is principally engaged in investment holding. It holds Shenzhen Naersi Fashion Co., Ltd. through Arrow and its domestic subsidiary Aurora. Nalth Fashion Co., Ltd. was founded in 1994. It owns three self-owned brands, NAERSI Nars, NAERSILING, NEXY.Co, and is aimed at women with economic strength from 30 to 45 years old.珂Leier has its own brands such as Koradior, La Koradior, Koradior Elsewhere and DE KORA. In June 2014, it successfully landed on the Hong Kong main board and became the first high-end women's wear company in Shenzhen.珂Leier Group said that the acquisition is of great significance to the Group's diversified and multi-brand matrix development strategy, by integrating the synergies of the two groups' strong design and product development capabilities and appropriate retail management systems. The Group saves operating costs and enhances its recognition and visibility in the domestic high-end women's wear industry while strengthening its profitability.
Investment M&A momentum is not diminished
Looking at the investment and mergers and acquisitions of clothing enterprises in the first quarter of 2019, it is not difficult to see that after several years of transformation and adjustment, the apparel industry has gradually recovered its weather, and all the sub-sectors have emerged as the leading potential, and the industry differentiation has become increasingly apparent. Many clothing companies are increasing their horsepower, and continue to expand the industry chain horizontally and vertically through industrial M&A investment, enhancing their competitiveness in the segmented industries. It can be said that the investment industry's investment in mergers and acquisitions from the last year has continued to be the same, and the momentum is not diminished.
Specifically, Shandong Ruyi and Fosun are still very active, targeting overseas markets to implement mergers and acquisitions; companies such as Jiu Muwang, Senma and Blonde Rabbi are mainly establishing joint ventures with international brands to further expand and enrich their product lines; Annar increased the synergy effect of the group's brand by increasing capital to participate in domestic similar brands; 珂Leier's acquisition intention is obviously to expand the group size, to occupy more levels of market share and enhance the overall competitiveness of the group.
Although these enterprises have different scales of revenues, different sub-sectors, and different actions in investment and mergers, a common trend is to expand and derivate around the main business. Undoubtedly, the integration of mergers and acquisitions of brands by brand enterprises and the construction of multi-brand comprehensive groups are the main path for enterprises to become stronger and bigger. Compared with self-innovative brands, M&A has matured and has a certain market reputation. The risk of future expansion of the company is small. At the same time, it can enrich the company's multi-brand camp, broaden and enrich the product line, and facilitate the channel and brand promotion. The areas achieve complementary advantages. This trend can be seen from the action of apparel companies in the capital market in the first quarter of this year.
However, whether it is the industrial integration of horizontal and vertical mergers, or the cross-border diversification of mixed mergers and acquisitions, it needs to conform to the development strategy and capital logic of enterprises, and it is necessary for garment enterprises to adhere to, optimize and expand in the traditional main business. With the further advancement of the market-oriented reform of mergers and acquisitions, resources are restructured and regenerated under the driving of capital. It can be expected that the integration of the apparel industry will become more obvious in the future. The phenomenon of mergers and acquisitions, mode differentiation and industrial integration of listed apparel enterprises will become Normal, and the stronger the strong, the business rule of survival of the fittest will still be unstoppable, becoming the only rule of survival in the industry.
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