Nanjing New Hundred 155.3 Million Sterling Buy Fraser

Nanjing Xinbiao announced yesterday that the company had spent only 155.3 million pounds on the UK's old-branded House of Fraser (hereafter referred to as Fraser), which had 62 stores, compared with the previous 450 million pound purchase price disclosed by British media. ) End your squat. After the completion of the acquisition, Nanjing Xinbai will hold 89% of the shares in the Highland Group (hereinafter referred to as “the subject”) of Frazer Holdings. In the assessment of January this year, the pre-assessment value of the underlying equity was worth 202 million pounds, and the pre-assessed value for the 89% equity was 179 million pounds.

Nanjing Xinbai plans to set up a wholly-owned subsidiary in the UK as the acquisition entity. If the acquisition goes well, Nanjing Xinbai paints a beautiful future. Nanjing Xinbai said that with the acquisition of Frazier, the company will achieve an international business layout and leverage on Fraser's mature experience in Howick, Dickins & Jones, Linea and other private brands to develop “self-operated + self- There is a sales model of brand + associate special brand ". Fraser’s deep partnership with suppliers in the UK will also enable Nanjing Xinbai to further expand its overseas supplier channels. Fraser's online platform and mature online sales model will also help Nanjing Xinbai start multi-channel construction.

It is understood that the target is the group of internationally renowned department stores. Its operating Fraser has more than 164 years of history. It is the oldest chain of Royal Authorized department stores in the UK. The company sells three types of products: own brand, purchase brand and special brand. The categories mainly cover men's wear, women's wear, children's wear, beauty, fashion accessories and home accessories. According to the announcement, in FY2014, the company’s total turnover was 1.192 billion pounds (unaudited), and its market share ranks among the top in the UK department store industry.

The annual report shows that the turnover of Nanjing Xinbai last year was 3.353 billion yuan, an increase of 17.66% year-on-year; the net profit was 135 million yuan, a year-on-year decrease of 29.02%. If the acquisition is successful, after the consolidated statements, Nanjing Xinbiao's revenue will exceed 10 billion yuan, and it will enter the leading domestic department stores.

However, although many favorable resources of Fraser can be usefully supplemented by Nanjing Xinbai, the positioning of the two is different. Frazer is a medium-to-high end department store brand in the United Kingdom. There are differences in the business model and channel between the two. Integration takes time. At the same time, because Fraser used the leveraged buyout method when it was privatized in 2006, the holding company's target asset-liability ratio was always at a relatively high level, resulting in a net loss every year.