Seven Wolves Will Buy Swiss Luxury Brand Bally

According to the world clothing and shoe net, two buyers in China include HK.00656 and

Manufacturer Fujian

(002029.SZ) have participated in bidding for Swiss luxury leather goods.

Bally, another Japan Trade Inc Itochu commercial also submitted a non binding offer. The company owns about 34% of the Paul Smith of London clothing company, and the clothing assets of frequent takeover of Fosun international include Italy Menswear Raffaele Caruso SpA, women's wear brand St. John and Greek jewelry company Folli Follie SA.

Bally JAB, the parent company of the company, has already started the selling process. Insiders estimate that the paction price will be about $700 million.

Previously, Bally was held by TPG, an American private equity fund, and was bought by JAB for $650 million in 2008, when its annual sales exceeded 4.11 billion.

In July of this year, Michael Kors bought the British luxury shoe brand Jimmy Choo from the JAB for 1 billion 200 million US dollars.

JAB hopes that the company will focus on food and beverage business, and has grown to become one of the largest coffee companies in the world after acquiring Keurig Green Mountain and Krispy Kreme Doughnuts.

Bally CEO Fr e d ric de Narp said in an exclusive interview with reporters that the brand has reached a consensus with JAB that it is now a good time to sell Bally to investors who are willing to invest more energy in the brand.

Data show that the annual sales growth in the 2016 fiscal year is 4%, the profit before the depreciation and amortization is increased by 100%, and the wholesale channel sales have increased by 20%. Among them, the tourism retail department responsible for airport duty-free shops has the most robust growth. However, Fr e d ric de Narp declined to disclose further figures, but said that the brand annual sales will be the 1 billion euro club in 2021.

It is noteworthy that in the highly competitive high-end clothing market, facing the dual pressure from overseas and domestic brands, the market space of domestic apparel group is being squeezed, and capital merger and acquisition has become a new strategy of group pformation. Seven wolves have launched two mergers and acquisitions investment this year.

In August of this year, seven wolves were to invest 243 million yuan in Hongkong's wholly-owned subsidiary to equivalents of the US dollar to invest in the Karl Lagerfeld Greater China Holdings Limited (KLGC) 80.1% stake and the corresponding shareholder loan.

The announcement indicates that KLGC owns the permanent, irrevocable, exclusive and redistributable right to use the Karl Lagerfeld of the international light luxury brand Karl in the Greater China region including Mainland China, Hongkong, Taiwan, Singapore and Singapore. The usufruct includes a series of core rights such as design, production and distribution.

After the completion of the delivery, each shareholder will subscribe to the new operation mode of KLGC KLGC, or the other way required by the board of directors according to the requirements of the board of directors of the KLGC. According to their respective shareholding ratio, they will provide 100 million yuan or equivalent capital for the KLSH to the KLSH, and the corresponding increase in the price of the seven wolves is 80 million 100 thousand yuan or equivalent in US dollars. This means that the total investment of the seven wolves is 320 million yuan or equivalent to the US dollar, which will be funded by its own capital.

After the completion of this paction, Target Corp will incorporate the seven wolves' consolidated statements.

The seven wolves will combine the operation experience of garment industry to improve the efficiency of KARL LAGERFELD stores and develop the KARL LAGERFELD brand authorization plan.

At the same time, the seven wolves said they hoped to participate in the fashion and light luxury brand's business mode and format through this paction, which is in line with the long-term strategic development direction of the company's "seven wolves fashion group". It is conducive to improving and replenishing the brand portfolio of the company. It is hoped that after joining the international international luxury operation experience team, it will enhance the operation capacity and efficiency of the seven wolves and speed up the pformation of the company's retail mode.

In the first half of 2017, sales of seven wolves increased by 12.06% to 1 billion 282 million yuan, and profits rose 14.11% to 158 million 400 thousand yuan. Net profit attributable to shareholders rose 15.95% to 122 million yuan.

In fact, last year, the performance of the seven wolves began to improve.

2016 annual performance bulletin showed that the company achieved a total revenue of 2 billion 640 million yuan during the period, an increase of 6.16% over the same period last year.

Total profit rose 39.3% to 369 million yuan over the same period.

In the field of electronic business, seven wolves increased significantly in 2016, which achieved a total revenue of about 900 million yuan, an increase of more than 30% over the same period, and sales of needle spinning products amounted to about 400 million yuan, up 50% over the same period last year.

Seven wolves said that the future will try to launch a new online brand to promote the sustainable development of e-commerce business.

Good financial conditions prompted seven wolves to start mergers and acquisitions this year.

In March of this year, seven wolves invested in the Hong Kong pictorial company's modern communication group Affiliated Companies modern digital.

The announcement shows that seven wolves invest in A share listed company Fujian seven wolves Affiliated Companies. The modern digital business mainly includes the digital media and TV business department of mobile information terminal iWeekly. After the completion of the seven wolves investment and subscription, the seven wolves invest to get the right to know the business and financial situation of modern digital group.

It is reported that the seven wolves invested 43 million 50 thousand yuan in cash to acquire 428570 shares after the modern digital stock expansion. After the completion of the paction, the modern communication and the seven wolf investment were holding the shares of modern digital 70% and 30% respectively.

For the paction with modern communication, Zhou Shaoxiong, chairman of the seven wolves, said that the stake is only a small step in cooperation with the modern communication group. The future is not limited to the mobile new media business. It also adds imagination to the industry. Whether the Fujian seven wolves will further control the modern media business with strong capital strength.

Some analysts said that from the two recent mergers and acquisitions, seven wolves are diversifying and upgrading their businesses. Their ambitions are no longer limited to the same brand business, but rather multi brand groups, and try to enhance brand fashion positioning through the acquisition of overseas luxury brands.

Up to now, JAB, Renaissance international, Itochu commercial and seven wolves have not commented on the news.

Last Friday, the price of the seven wolves rose by 0.21% to HK $9.7 per share, with a market value of HK $7 billion 300 million.

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