Retail News CRM

Tag: ACQUISITION

  • BreadTalk buys out joint venture partner in Thailand

    BreadTalk buys out joint venture partner in Thailand

    Minor Group has sold its half share in BreadTalk Thailand to the bakery’s Singapore-listed owner. According to the Straits Times, BreadTalk paid US$5.15 million for the stake, which Minor Group is expected to use to expand its other food and beverage brands in the kingdom, including The Coffee Club.   The BreadTalk Thailand joint venture, called BTM Thailand, was set up in 2014.

    Minor Group’s other brands in Southeast Asia include ThaiExpress, Xin Wang Hong Kong Cafe, Swensens and the Pizza Restaurant Company.

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  • PepsiCo franchise rights to be acquired in South, West India

    PepsiCo franchise rights to be acquired in South, West India

    PepsiCo India’s bottling partner Varun Beverages Monday said its board has approved plans to acquire franchise rights of the beverages and snacks major in South and West regions. The board has approved the company’s intent to enter into a binding agreement with PepsiCo India Holdings to acquire franchise rights in the two regions for a national bottling, sales and distribution footprint in seven states and five UTs, Varun Beverages Ltd (VBL) said in a regulatory filing.

    According to a report, upon completion of these acquisitions, VBL will be a franchise of PepsiCo beverages business across 27 states and seven Union Territories (UTs), it added.

    “The proposed acquisitions are in line with the company’s strategy to expand into contiguous territories and will help to acquire greater scale, operational productivity and efficiency leading to higher revenues and profitable growth,” it said.

    VBL, however, did not disclose financial details of the proposed acquisitions.

    The company further said its board will meet on February 26 to consider raising of capital through Qualified Institutions Placement (QIP).

    Last year in January, VBL had entered into a pact with PepsiCo to sell and distribute the latter’s entire Tropicana range of juices along with Gatorade and Quaker Value-Added Dairy in North and East India.

    VBL already held manufacturing, sales and distribution rights for Tropicana Slice and Tropicana Frutz in the two regions.

    PepsiCo had then stated that North and East regions together accounted for 80 percent of the juice market in India and VBL’s contiguous reach would help it more than double the distribution reach in these states.

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  • Japanese fund buys Vietnamese fashion chain Elise

    Japanese fund buys Vietnamese fashion chain Elise

    Japanese investment fund Advantage Partners (AP) is to buy Vietnamese fashion brand Elise and its affiliate companies. This transaction marks AP’s first foray into Vietnam. Going forward, AP will focus on accelerating Elise’s growth, using its experience in women’s fashion investments in other markets. Founded in 2011, Elise is a leading Vietnamese fashion label targeting women aged 20-45. It currently operates 95 stores across the country.

    Last year, Elise was reported to have been acquired by Uniqlo parent Fast Retailing however, the Japanese group has since denied the move.

    Advantage Partners is a private investment firm with asset platforms in Asia, and offices in Tokyo, Hong Kong, Singapore and Shanghai.

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  • Alibaba’s Ant Financial buys WorldFirst for $700m

    Alibaba’s Ant Financial buys WorldFirst for $700m

    Alibaba subsidiary Ant Financial says it plans to buy UK-headquartered money-transfer company WorldFirst. And in separate news, the Chinese e-commerce behemoth is in discussions over investing in the Metro China wholesale retail business.

    The WorldFirst deal will allow Ant Financial to gain market share in Europe’s fintech and payments industries and will give it an established retail network of currency-exchange stores covering cities including Sydney, Australia; London and Amsterdam, as well as throughout Asia. It has 600 employees in seven international offices and claims to have exchanged more than US$67 billion for 130,000 customers since its launch in 2004.

    The company also had outlets in the US but has reportedly closed these to avoid potential regulatory hurdles with the sale to a Chinese-owned business.

    Ant Financial last year unsuccessfully tried to acquire US-based money-transfer company MoneyGram, largely due to opposition from US lawmakers.

    Metro move

    Meanwhile, Alibaba is in talks to buy a share of German wholesaler Metro AG’s Chinese business.

    Neither company has confirmed or denied the talks are underway and they are at an early stage and may break down.

    Metro China operates 95 stores and struggled to achieve profitability in the market until recently. Metro sales in Asia rose 7 per cent to US$1.17 billion in the December quarter.  Most of the Metro China stores are in tier 1 cities, including Beijing and Shanghai.

    Metro is holding talks with other parties as well ahead of an official sale process.

    Olaf Koch, Metro’s CEO, confirmed this week that the company was considering potential partnerships with Chinese companies. Metro and Alibaba have already cooperated online.

    “We are growing continually and we are profitable [in China],” Koch said at the time Metro released its first-quarter results.

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  • Reliance India buys additional stake in Future101, Genesis Colors

    Reliance India buys additional stake in Future101, Genesis Colors

    Billionaire Mukesh Ambani-led Reliance Industries has raised its stake in luxury apparel firms Future101 Design and Genesis Colors to strengthen its foothold in retail industry. Reliance Brands Ltd (RBL), a unit of RIL, “has acquired a further stake of 2.5 percent in Future101 Design Pvt Ltd on February 7, 2019, for a consideration of Rs 1.99 crore, taking its total stake in Future101 to 15 percent,” the company said in a regulatory filing.

    According to a report, also, Reliance Retail Ventures Ltd (RRVL), a separate subsidiary of the company, acquired a further stake of 9.44 percent in Genesis Colors Ltd (GCL), for Rs 45 crore taking its total stake in GCL to 29.07 percent on the enhanced capital.

    “Consequently, the stake of RBL in GCL shall be 43.66 percent and the aggregate equity shareholding of RRVL and RBL in GCL stands at 72.73 percent,” it said.

    Reliance said the acquisitions will help it to strengthen its foothold in the retail industry and support its long-term strategy to enhance its value in the industry.

    No regulatory approvals were required for the acquisition of shares and the investment does not fall within related party transaction, it added.

    The company had in July last year bought 12.5 percent stake in Future101, which is engaged in manufacturing, distribution, and sale of luxury apparels in India, for Rs 9.50 crore.

    Future101 reported an annual turnover of Rs 22.18 crore in 2017-18.

    In September 2018, RRVL had acquired a 16.31 percent stake in GCL, which owns fashion label Satya Paul, for Rs 34.80 crore. RRVL, through unit RBL, already held a 49.46 percent stake in GCL.

    That month, RRVL invested a total of Rs 57.03 crore in five other companies that sell branded readymade garments, bags, footwear, cosmetics and accessories.

    It bought a 2.07 percent stake in Genesis Luxury Fashion Pvt Ltd for Rs 3.37 crore, taking its holding in the company to 49.37 percent. Genesis Luxury Fashion distributes premium brands such as Jimmy Choo, Armani, Paul Smith and Bottega Veneta.

    It also bought 50 percent stake each in GLF Lifestyle Brands Pvt Ltd and Genesis La Mode Pvt Ltd for Rs 38.45 crore and Rs 10.57 crore, respectively.

    Besides, it acquired 50 percent each of GML India Fashion Pvt Ltd and GLB Body Care Pvt Ltd for Rs 4.48 crore and Rs 16 lakh, respectively.

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  • Shandong Ruyi buys Invista’s global Lycra business

    Shandong Ruyi buys Invista’s global Lycra business

    Chinese textile and retail investment company Shandong Ruyi has bought the US-based Lycra business for an undisclosed sum. Shandong Ruyi, whose retail investments include Aquascutum and SMCP (Sandro, Maje, and Claudie Pierlot), will take over the world-famous lycra brand, all assets and contracts relating to Lycra from current owner Invista and rename the business The Lycra Company.

    Lycra’s CEO Dave Trerotola said in a statement the company was fortunate to have been acquired by Shandong Ruyi.

    “[The] company shares our vision and our commitment to delivering high-quality products, technical expertise, and unmatched marketing support to our valued customers,” he said.

    The new company will operate as an independent subsidiary, and will continue to manufacture advanced fibre and technology solutions for the apparel and hygiene industries. The Lycra Company also owns a raft of consumer and trade brand names, including Lycra HyFit, Lycra T400, L by Lycra, Coolmax, Thermolite, Elaspan, Supplex, Tactel, and Terathane.

    “With the continued investment of Ruyi, we look forward to working with our customers to bring exciting innovations to market. Our new shareholder’s textile and retail experience will be a tremendous asset as we develop differentiated fibres that deliver the lasting performance benefits consumers have come to know and expect from our brands,” said Trerotola.

    The acquisition includes eight manufacturing facilities, four research and development labs, 17 offices located in 14 countries, and about 3000 employees. Current management and employees will continue in their roles.

    Yafu Qiu, chairman of the board of Shandong Ruyi, promised his company would continue to invest in The Lycra Company’s innovation pipeline and brands in order to grow the business.

    “As a spandex producer ourselves, we have admired the iconic Lycra brand for years, and we see the value The Lycra Company adds to our business. We believe its assets and capabilities are a perfect complement to our own and will help strengthen our position as a world-class, fully integrated textile company.”

    The Lycra Company’s legacy stretches back to 1958 with the invention of the original spandex yarn, Lycra fibre.

    Shandong Ruyi Investment Holding is the largest textile and apparel company in China, and ranks among the Top 100 Chinese multinational enterprises. It is headquartered in Jining, Shandong and operates 13 domestic industrial parks.

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  • LVMH is “eyeing stakes” in OFF-WHITE‘s parent company

    LVMH is “eyeing stakes” in OFF-WHITE‘s parent company

    LVMH is “eyeing stakes” in OFF-WHITE‘s parent company, New Guards Group, WWD reports. If the rumors are true, the move would bring LVMH Moët Hennessy Louis Vuitton even closer to fashion’s main man, Virgil Abloh, the founder of OFF-WHITE and artistic director of menswear at Louis Vuitton.

    New Guards Group Holding SpA is a Milan-based holding company that also looks after OFF-WHITE as well as Palm Angels, Heron Preston, and Marcelo Burlon County of Milan.

    This is not the only venture on the cards over at LVMH at the moment, either. The company is reportedly also making moves to create Rihanna her own luxury fashion house.

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  • Patek Philippe may come up for sale

    Patek Philippe may come up for sale

    Patek Philippe, the closely held maker of $10,000-plus Calatrava watches, may be coming up for sale, according to analysts at Berenberg who cited industry talk. The 180-year-old Swiss watchmaker could fetch 7 billion to 9 billion euros ($8 billion to $10 billion), analysts led by Zuzanna Pusz wrote in a note. Patek Philippe has been owned by the Stern family for almost a century, and Thierry Stern became the company’s chairman in 2009.

    A Patek spokeswoman declined to comment except to say deal speculation tends to occur during the annual watch fairs in Switzerland, including last week’s Geneva show. A sale of Patek Philippe would upend the watch industry and could lead to a bidding war, as it is one of the last prize assets that hasn’t fallen into the hands of a luxury conglomerate. Swatch Group AG, which has bought up brands including Omega, and Richemont, which owns Cartier, make more than half of Swiss watches.

    Patek Philippe has sales of 1.5 billion francs, according to Berenberg estimates. On its website, the company says its “intention is to independently pursue the path that led to its success.”

    “We understand that one of the largest conglomerates in the sector would likely be interested in the asset given its currently relatively low exposure to the watch category,” the analysts wrote. Pusz was not immediately available to comment further.

    Two years ago, family-owned Breitling was sold to private-equity owners CVC Capital Partners for more than 800 million euros.

    In 2014, Stern told Swiss newspaper Le Temps that the company may eventually need to leave Geneva or put itself up for sale if its tax burden was not reduced. Months later, the company announced a 450 million-franc ($451 million) investment plan in the canton.

    Stern’s wife, Sandrine, works in design at Patek Philippe. Their children are in their teens, and Patek’s chairman has said he wouldn’t push them into the business if they did not want to join.

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  • China’s Trendy Group buys the Denham Group

    China’s Trendy Group buys the Denham Group

    Dutch denim company Denham Group has a new major shareholder, according to reports in the Netherlands, with China’s Trendy Group named the official buyer. The parent company of denim label Denham the Jeanmaker, Denham Group was snapped up by Trendy from Amsterdam-based investment firm Amlon Capital for an undisclosed amount.

    Denham’s current chief creative officer Jason Denham will remain in the top design spot, following the acquisition, and will remain a shareholder, Trendy said in a press release.

    However, Ludo Onnink, CEO at Denham Group, will depart the company his post, with Andre Chen, senior vice president at Trendy Group, to succeed him.

    Denham Group

    Trendy views the Denham Group acquisition as an opportunity to nurture and expand the Denham brand in current markets such as China, via the production of new items.

    Denham Group and Trendy are familiar allies. Back in March 2017, the companies announced a joint venture to further expand the European denim brand in China, resulting in the opening of 16 retail stores in key cities in Chin. Now, there are plans to further grow the business in the coming years as a result of the acquisition.

    “We see many opportunities to grow the Denham business in the existing markets but also as the most influential denim player in the future,” said Chen.

    “This will not only be achieved by extending our jeans business, but also by adding additional product categories.”

    Founded in 2008 in Amsterdam by Jason Denham, Denham retails in some 20 cities including its local Amsterdam, as well as nearby Antwerp and Hamburg. As for Asia, it is present in Tokyo, Osaka, Shanghai and Seoul.

    In wholesale terms, the label is has global partners and is available for purchase via its namesake online store. The Denham is also headquartered in Amsterdam, with sub-offices in Düsseldorf, Shanghai and Tokyo.

    Launching in 1999, China’s Trendy Group is today a global fashion and denim mecca with a stable that includes fashion brands form the Italian house Sixty Group: Miss Sixty, Killah and Energie.

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  • Emami India acquires German brand Creme 21

    Emami India acquires German brand Creme 21

    Indian FMCG major Emami Ltd on Friday said it has acquired German brand Creme 21 in the personal care space, having major business in the Middle East and other focus markets. The brand, which offers skin care and body care products such as creams and lotions, shower gels, sun care range and men’s range, has been acquired at less than 1.5 times of its sales.

    With current sales at over eight million euros and a gross margin of over 50 per cent, the city-headquartered company expects to take this brand on an aggressive growth trajectory.

    “The acquisition has a strong business fit as it operates in our focus markets and chosen categories. We plan to leverage our existing network of distribution and infrastructure to grow the brand.

    “It has good potential for growth and we expect it to add value to our growth trajectory. With this acquisition, the company would be able to enjoy economies of scale due to additional business base,” said company Director Harsha V. Agarwal.

    The company said international acquisition is in line with its strategy for growth through inorganic route.

    Over 80 percent of the brand’s business is contributed by MENA (the Middle East and North Africa) region and the balance by Germany and other focused countries. The products are manufactured by a third party in Germany under asset lean model.

    “The acquisition is being funded from internal accruals,” it added.

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  • Axiata buys 80% stake in Laos firm

    Axiata buys 80% stake in Laos firm

    Axiata Group Bhd’s 63%-owned subsidiary edotco Investments (Labuan) Ltd (edotco Labuan) is acquiring an 80% stake in Laos’s Mekong Tower Company Ltd (MTCL) for LAK12.8 billion (RM6.08 million) cash. Axiata said in a filing with the stock exchange that edotco Labuan had entered into a share subscription agreement (SSA) with Viphet Sihachakr (VS) and MTCL for the purchase.

    The SSA is subject to, amongst other, procurement of operating licence or other form of authorisation from the Ministry of Post and Telecommunications of the Government of Laos to MTCL for the provision of infrastructure solutions for telecommunications and network operators in Laos; registration of MTCL with the Ministry of Industry and Commerce of the Government of Laos; and procurement by VS of viable business including relevant concessions and/or incentives in Laos.

    Unless waived by the parties, the conditions must be satisfied not later than six months from the date of the SSA.

    “The proposed subscription provides opportunities for edotco group to expand into a new market and grow organically via build-to-suits and inorganically with sizeable sale-and-leaseback prospects,“ Axiata said.

    The Laos tower market is expected to undergo intense growth in tandem with a national drive towards 4G adoption, with an estimated demand of no less than 5,000 towers over the next three years, underscoring the need for an independent tower player to meet the requisite capital expenditure and cost optimisation burdens incumbent on local mobile network operators.

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  • Lotte’s Ministop deal falls through

    Lotte’s Ministop deal falls through

    The sale of convenience store chain Ministop fell apart as potential bidder Lotte and the Japan-based convenience franchise failed to agree on a price. The AEON Group of Japan, the largest shareholder of Ministop Korea, filed a notice on Monday that it has suspended the sale process to sell its full stake in the unit. The AEON Group owns a 76.06 percent share while Daesang Group, a Korean food conglomerate, has a 20 percent stake. Japan’s Mitsubishi holds 3.94 percent.

    Ministop Korea also notified its workers of the suspension, vowing to keep searching for a potential suitor.

    Executives from AEON and Ministop visited Seoul over the weekend to meet Shin Dong-bin, chairman of Lotte Group, which also owns 7-Eleven in Korea.

    The retail giant has been considered the likeliest buyer since it reportedly offered the highest price of around 400 billion won ($357.3 million).

    Other competitors include Shinsegae, which owns convenience store franchise Emart24, and Glenwood Private Equity, a local private equity firm.

    Ministop opened a bidding process back in November, but delayed selecting a preferred bidder.

    The introduction of a government regulation banning the opening of convenience stores within 80 meters (262 feet) of another store led to Ministop requesting a higher price, according to local media outlets.

    Ministop’s sale garnered attention from the beginning because it could impact the highly-competitive convenience store chain market in Korea.

    Ministop operates 2,500 stores across the country. If Lotte had succeeded in acquiring Ministop, it could have increased its number of stores from 9,500 to 12,000.

    CU runs the most stores, at 13,109, while the second player is GS25 with 13,018.

    Emart24 ranks fourth with 3,564 stores.

  • Indonesia’s Danamon Bank Plans Merger With BNP

    Indonesia’s Danamon Bank Plans Merger With BNP

    Bank Danamon, Indonesia’s fifth-largest private lender, announced a plan on Tuesday to merge with local lender Bank Nusantara Parahyangan. “The proposed merger is subject to approval by the relevant regulatory authorities, both banks’ shareholders, and to meeting the legal formalities for such a transaction,” Bank Danamon said in a statement on Tuesday.

    This is part of a larger plan by Japan’s Bank Mitsubishi UFG (MUFG) to acquire a 73.8 percent stake in Bank Danamon.

    Bank Danamon and Bank Nusantara Parahyangan (BNP) are now able to merge after MUFG acquired 40 percent of Danamon in August last year.

    Aside from owning Bank Danamon, MUFG also holds a majority stake in BNP through its subsidiary, Acom, one of Japan’s largest loan companies.

    Bank Danamon and BNP are required to merge as Indonesia applies a single-presence policy, which ensures that one single entity does not hold a majority stake in more than one company.

    MUFG’s plan for acquiring a majority stake in Danamon has been laid out in three stages.

    In the first stage, which was completed in December 2017, MUFG acquired a 19.9 percent stake in Danamon from Singapore’s wealth fund firm Temasek for $1.17 billion.

    The Japanese lender subsequently raised its stake in Danamon to 40 percent last August with the acquisition of a further 20.1 percent. In the final stage, the Japanese lender will seek approval to acquire the remaining shares, which in total, will give it a 73.8 percent stake.

    The acquisition is the part of MUGF’s ambitious plan to expand its presence in the region.

    The deal marks the largest acquisition of an Indonesian company by a foreign entity after American multinational cigarette and tobacco manufacturer Philip Morris International bought a 60 percent stake in HM Sampoerna for $3 billion.

  • Unison Capital could bag US$442 million for Gong Cha deal

    Unison Capital could bag US$442 million for Gong Cha deal

    South Korean private equity firm Unison Capital is selling its Gong Cha bubble tea franchise in a deal likely to fetch up to US$442 million. The company purchased the brand four years ago for KRW34 billion ($30 million), before taking over its global headquarters in Taiwan in a KRW40 billion ($35.45 million) deal in 2017. The brand’s HQ operates stores in 16 countries.

    The offer has attracted interest from major South Korean F&B players, considering the brand’s stable cash flows and EBITDA margin of 24–25 per cent, compared with Starbucks’ 21 per cent.

    The brand runs 448 outlets within South Korea, and derives 70 per cent of its sales from directly managed stores within Korea and Japan. The firm plans to expand its global store count from 900 to 1700 by 2021, expanding into 10 more countries during the period – with concrete plans to establish stores in the UK, Mexico, Thailand, Indonesia and Cambodia.

    Sales are forecast at KRW180 billion ($159.54 million) this year, compared to KRW134 billion ($118.77 million) last year.

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  • SK Telecom announces plan to take on KakaoTalk

    SK Telecom announces plan to take on KakaoTalk

    SK Telecom introduced a new messaging service on Tuesday in an attempt to compete with Korea’s dominant chat app, KakaoTalk. The new service will look a lot like Apple’s iMessage. Users won’t have to download a separate app. It is offered to SK Telecom subscribers only. Messages will be sent on data networks. Group chat and check whether your message has been read will also be offered.

    Later in the year, SK Telecom promises more features so that users can share mobile gift coupons and transfer money. These are all services already offered by KakaoTalk.

    SK Telecom is trying to make its service competitive by offering freebies. Transfers of picture or video files of less than five megabytes will be free from data charges. It is also running promotions through June that will allow sharing of files up to 100 megabytes for free.

    The carrier is also preparing to launch a dedicated message service targeting business customers within the first half of this year.

    That service is based on Rich Communication Services (RCS), a communication protocol developed by the Global System for Mobile Communication Association better known as GSMA, to replace SMS messages.

    The telecom said it is planning on making the message service compatible for customers of different carriers in Korea.

    In December, KT introduced a message service dubbed Chatting based on the same RCS specifications. Basic features are identical for the two services, but they differ in some features depending on what telecom a person uses.

    Last year, KT promoted a chatting bot service on the new message service. Simple inquiries about the company’s products and services could be handled by the chat bot. In the future, it is planning to linking shopping services to the chat bot.

    Luring customers away from KakaoTalk will not be easy. Chat app users are resistant to change because all their friends use the same app.

    In the initial stage, SK Telecom’s chat service will only be offered to owners of Samsung Electronics’ flagship smartphones Galaxy Note9, S9, S9+. By February, Galaxy Note8, S8, S8+ users will also get in through an update.

    The upcoming Galaxy S10 smartphone will come with the RCS-based message app pre-installed.

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