Home / Knowledge / News / Fashion / FUQI acquires 00% ownership of Temix
FUQI acquires 00% ownership of Temix
13
Aug '08
FUQI International Inc announced that it has completed the purchase of two jewelry companies, Shanghai Tian Mei Jewelry Co Ltd and Beijing Yinzhong Tian Mei Jewelry Co Ltd collectively known as Temix ("Temix") on August 7, 2008. FUQI has acquired 100% ownership of Temix an asset purchase transaction.

Under the terms of the transaction, FUQI paid a total consideration of RMB 135 million (approximately USD$19.7 million, based on a conversion price of USD: RMB 1.00:6.86), with RMB 80 million (approximately USD$11.7 million) consideration to be paid in cash and the remaining consideration to be paid in restricted common stock.

The RMB 80 million paid in cash is for the value of the inventory on hand in Temix retail locations. The issuance of FUQI's shares included in the equity portion of the purchase price for Temix is RMB 55 million (approximately USD$8.0 million), or 1,080,666 shares, and one-half of the shares will be placed into escrow and remain subject to the achievement of certain performance targets over the two-year period following closing.

Temix is a 50 outlet branded jewelry store chain with locations principally in Beijing, Shanghai, and Ningbo. Of the 50 outlets, 6 are stand-alone stores and 44 are store counters within department stores.

The chain sells primarily diamond jewelry, but also sells karat gold and gemstone jewels, including ruby and jade. For the year ended December 31, 2007, Temix had revenues of approximately USD$12.3 million (unaudited) and the company was profitable.

Through the first six months of 2008, Temix had revenues of approximately USD$9.2 million (unaudited) and was profitable.

Temix has been led by Mr. Chujian Huang, who is the founder and CEO of Temix and a 15-year veteran in China's jewelry industry, particularly in the Yangtze Delta region.

Upon closing, Mr. Huang became a full-time employee of FUQI, responsible for managing the Temix chain, and reports to Ms. Jianying Li, Director of Retail Operations for FUQI International. Mr. Huang and the core Temix management team agreed to stay with FUQI for at least three years.

Mr. Yu Kwai Chong, Chairman of FUQI International commented, "We are pleased to close this transaction, which strengthens our efforts in China's retail jewelry market.

The Temix acquisition is expected to be accretive to our business immediately upon closing and provides us with a strategic opportunity to further diversify our business, improve our margin performance, and expand our market presence.

FUQI's strong financial position can strengthen the performance at each Temix outlet by better capitalizing their counters and stores to ensure they have an appropriate level of inventory, a compelling mix of fashionable jewelry designs and strong brand promotion.

With this acquisition, we will have a total of 53 outlets, comprised of 47 store counters and 6 retail stores and are well on plan to reach our goal for the full year to open or acquire up to 60 to 80 retail counters and 8 to 10 retail stores.


Must ReadView All

Courtesy: Fancycrave.com from Pexels

Apparel/Garments | On 22nd Jun 2018

EU's retaliatory duty on US apparel takes effect

As part of the three-pronged response outlined by the European...

NCC applauds House passage of farm legislation

Textiles | On 22nd Jun 2018

NCC applauds House passage of farm legislation

The National Cotton Council (NCC) of the US has welcomed the passage...

Courtesy: Roman Pohorecki from Pexels

Apparel/Garments | On 22nd Jun 2018

UK launches inquiry on sustainability of fashion industry

The Environmental Audit Committee of the UK Parliament has launched...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search