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Nanjing Cenbest completes acquisition of House of Fraser
03 Sep '14
2 min read
Nanjing Xinjiekou Department Store Co., Ltd. (Nanjing Cenbest), a leading chain of Chinese department stores has completed the acquisition of the iconic House of Fraser, a UK and Ireland based retailer of fashion clothing.
Nanjing Cenbest which is a subsidiary of Sanpower Group said the deal was completed at an enterprise value of around £480 million.
Earlier on April 12, Nanjing Cenbest had signed a definitive agreement to acquire approximately 89% of Highland Group Holdings Ltd, the holding company of House of Fraser.
The remaining shareholding of approximately 11% of House of Fraser is currently held by West Coast Capital (Hofco) Limited, a subsidiary of the Sports Direct Group.
Nanjing Cenbest offered to acquire this shareholding on the same terms as the acquisition but no agreement was finalised.
Yuan Yafei, Chairman of Sanpower Group said, “It is the largest acquisition of a foreign retailer by a Chinese listed company. We are excited to tap the significant opportunities that House of Fraser has in China, where the brand has very strong growth potential.”
He added, “We are extremely confident House of Fraser will become a leading global department store and will serve as a bridge for premium brands between China and Europe.”
Don McCarthy, Retiring Chairman of House of Fraser said, “The acquisition by Nanjing Cenbest will move House of Fraser to the next stage of its development as a leading international, multi-channel retail group with a premium fashion offering”.
John King, CEO at House of Fraser said, “House of Fraser is starting a new and exciting chapter under new ownership, with shareholders who have plans to support the next exciting phase in the development of the business.
“We will be in contact with our brand partners shortly to outline our exciting plans to make House of Fraser a truly global multi-channel retailer”, he added. (AR)
Nanjing Cenbest which is a subsidiary of Sanpower Group said the deal was completed at an enterprise value of around £480 million.
Earlier on April 12, Nanjing Cenbest had signed a definitive agreement to acquire approximately 89% of Highland Group Holdings Ltd, the holding company of House of Fraser.
The remaining shareholding of approximately 11% of House of Fraser is currently held by West Coast Capital (Hofco) Limited, a subsidiary of the Sports Direct Group.
Nanjing Cenbest offered to acquire this shareholding on the same terms as the acquisition but no agreement was finalised.
Yuan Yafei, Chairman of Sanpower Group said, “It is the largest acquisition of a foreign retailer by a Chinese listed company. We are excited to tap the significant opportunities that House of Fraser has in China, where the brand has very strong growth potential.”
He added, “We are extremely confident House of Fraser will become a leading global department store and will serve as a bridge for premium brands between China and Europe.”
Don McCarthy, Retiring Chairman of House of Fraser said, “The acquisition by Nanjing Cenbest will move House of Fraser to the next stage of its development as a leading international, multi-channel retail group with a premium fashion offering”.
John King, CEO at House of Fraser said, “House of Fraser is starting a new and exciting chapter under new ownership, with shareholders who have plans to support the next exciting phase in the development of the business.
“We will be in contact with our brand partners shortly to outline our exciting plans to make House of Fraser a truly global multi-channel retailer”, he added. (AR)
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