Bosideng International buys Jessie ladies' wear brand

01 Nov '11

3 min read

Bosideng International Holdings Limited, the largest down Apparel Company in the PRC, is pleased to announce that the wholly-owned subsidiary of the Group, Jessie International Holdings Limited, entered into an agreement on 28 October 2011, to purchase 70% shares of Talent Shine Limited and Sunny Bright Global Investments Limited (Target Companies) for a total consideration of RMB892.5 million.

One-third of the consideration will be paid in cash by the Group's internal resources, while the remaining two-thirds will be paid by the issuance of 235 million shares in the Company at the price of HK$3.10 per share.

The Target Companies own several mid-to-high end ladies' wear brands including “JESSIE” and “Le Mauve”, and provide services such as design, brand marketing and planning. For the year ended 31 December 2010, the profit after tax of Talent Shine Limited amounted to RMB54.4 million. In addition, Talent Shine International Limited will offer profit guarantee to the Group, guaranteeing CAGR in the profit after tax of more than 25% in 2012, 2013 and 2014.

“JESSIE” is a leading mid-to-high end ladies' wear brand in the PRC established in 1999, with brand position of stylish ladies' wear targeting business women aged between 28 and 45. Its product portfolio covers both business and casual styles. As at the end of September 2011, “JESSIE” owned 81 self-operated stores and 172 franchise stores.

Upon completion, the Group will sell ladies' wear of the “JESSIE” brand by way of self-operated and franchised businesses, and will consider tapping the international market when suitable opportunities arise. Looking ahead, the Target Companies will put greater effort in the expansion in the China market. It is expected that 200 new stores will be opened in the next three years, with the total number of stores reaching 400.

Commenting on the acquisition, Mr. Gao Dekang, Chairman and CEO of Bosideng, said, “The Group's product portfolio will be further enhanced, and our non-down apparel business and revenue composition will also be strengthened through the acquisition.

'JESSIE' can also leverage the abundant resources of the Group to accelerate its business expansion. I look forward to working with the outstanding management team of 'JESSIE', to achieve our goal of becoming a world famous integrated brand operator, thus bringing maximum returns to our shareholders.”

Bosideng International Holdings Limited is the largest down Apparel Company in the PRC. As at 31 March 2011, it has 7,579 retail outlets selling down apparel under its six core brands including “Bosideng”, “Snow Flying”, “Kangbo”, “Bengen” (previously known as “Bingjie”), “Shuangyu” and “Shangyu”.

Bosideng International Holdings Limited

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