Domestic Sports Brand Is Coming Out Again, And XTEP Is Close To Acquiring The Old K-Swiss.

Details of XTEP's potential mergers and acquisitions are exposed.

In April 17th, according to a number of Korean media reports such as the Korean Herald, XTEP, the Chinese sports brand, is about to conclude an agreement with the Korean clothing retailer E-Land World to acquire K-Swiss, the US shoe brand of the group.

It is reported that the scale of the acquisition is about 300 billion won, about 270 million dollars and 1 billion 770 million yuan, and is expected to reach a preliminary agreement in April 2019.

Only a week ago, news of XTEP's intention to acquire overseas brands came out.

At that time, the news said that XTEP intends to buy a American Sporting Goods Corp from 240 million to 260 million dollars, the target of acquisition is positioned in the high-end market.

Meanwhile, at the beginning of April, XTEP completed the placement of 247 million shares, HK $5.56 per share, and net income of HK $1 billion 400 million.

But XTEP did not disclose the use of funds, which is widely believed to be used for this potential acquisition.

In April 10th, XTEP issued a notice that the board was indeed exploring and evaluating a number of potential mergers and acquisitions opportunities, but at present, the company did not make any final decision on any paction, nor did it enter into any binding agreements.

But the announcement stressed that "the company's vision is to expand from a single Brand Company to a multi brand portfolio," according to the previous annual report of the company in 2018.

Thus, XTEP's willingness to seek acquisitions is clear.

Today, the identity of the potential acquirer emerges.

As of press release, XTEP did not issue a public notice and comment.

According to public information, guise Wei is a shoe manufacturing company headquartered in California, USA, founded in 1966.

This sports brand is famous for producing the world's first double leather tennis shoes. Its current business involves running, fitness, triathlon, tennis and other comprehensive sports areas and casual wear.

At present, it focuses on the US market and has branches in Europe, America, Asia, Asia, Canada, Germany, the United Kingdom, Singapore and Japan.

Since 2008, he has suffered a long loss.

Subsequently, in the doldrums of performance, in January 2013, guise Wei announced that it had accepted the takeover of the clothing and love group, with a paction price of about 170 million dollars, and the latter holding 100% of guise Wei.

But in recent years, the debt ratio of the group has climbed year by year. In order to improve the financial structure, the group began selling assets. In 2017, the company sold its Teenie Weenie to the Chinese women's wear brand, vicknus, at a price of 877 billion won.

At the same time, gestus also entered the selling list of the clothing and love group.

As early as 2017, the clothing and love group had sought to sell the gestapi on the basis of the company's structural adjustment, when the offer was about 200 billion won.

Until January 2019, there was substantial progress in the sale plan.

At that time, it was reported that the clothing and love group was negotiating with a Chinese company on the sale of gestapi.

Today, the Chinese company is XTEP. In two years, the paction price has risen from 200 billion to 300 billion won.

XTEP has repeatedly expressed its multi brand strategic intent. In March 2019, the company formally embarked on the exploration of multi brand.

The local company has established a joint venture with Wolverine, an American shoe company, and has launched two brands of Saucony and Merrell in mainland China, Hongkong and Macao.

To this end, XTEP paid about 155 million yuan to the joint venture as the initial amount of financing.

XTEP management revealed that the first stores of Saucony and Merrell will be opened in early 2020, and the goal of 2020 is to open 30 to 50 stores for all brands.

Prior to that, XTEP first sold two brands of products through e-commerce channels.

Announcing the introduction of Saucony and Merrell for only one month, XTEP continues to acquire overseas enterprises. In the short term, it will be a challenge for the company's resource coordination, channel layout and operation.

After the news of the acquisition of Ge Wei was disclosed, the stock price of XTEP fell more than 1% in the morning of April 18th, and its total market value is about HK $12 billion 99 million.

Author: Luo Yingying