Baozun acquires Gap Greater China and establishes its brand
SHANGHAI, China, Nov. 08, 2022 (GLOBE NEWSWIRE) — Today, Baozun Inc. (Nasdaq: BZUN and HKEX: 9991) (“Baozun” or the “Company”), a leading provider of branded e-commerce and commerce enabler in China, announced that it has signed definitive agreements to acquire Gap Greater China (“Gap Greater China”), in an all-cash transaction with a principal counterparty of an amount of 40 million US dollars. The acquisition is subject to satisfaction of customary closing conditions and regulatory approval.
Gap Greater China is 100% owned by Gap Inc. (“Gap”), America’s largest specialty apparel company providing iconic and comfortable apparel, accessories and personal care products for men, women and children. Since its first store in China in 2010, Gap Greater China has achieved solid expansion throughout Greater China, gaining widespread brand awareness with nearly 30 million loyal members in the region. Since December 2018, the company has been serving Gap Greater China as an e-commerce service partner and has successfully enabled Gap Greater China to expand its e-commerce business in Greater China, generating solid growth.
As part of its strategic plan to drive sustainable growth, Baozun has established Baozun Brand Management (BBM) as a new business line that intends to leverage its dominant portfolio of brand-serving technologies to engage in longer and deeper relationships with brands. The substantial size and scope of Gap Greater China makes this acquisition an important step in the development of BBM. Baozun believes that the combination of its China-for-China strategy and technology and its data-driven approach in product and consumer operations will enable Gap Greater China to secure sustainable future growth.
Vincent Qiu, Chairman and CEO of Baozun, said, “This acquisition accelerates our evolution into a technology-driven omnichannel commerce player. Technology is central to our strategy and is our competitive advantage. With Gap’s brand equity and significant size in Greater China, BBM will start at a higher level to bridge the gap between digital commerce and brick-and-mortar at scale and do what few have done in commerce. detail. »
“Baozun Brand Management is a strategic addition that flows naturally from the existing e-commerce services core business. We aim to leverage our advanced technology portfolio and become a holistic and comprehensive partner for global brands to further unlock business potential in China. In the meantime, we will also accelerate the establishment of our retail talent pool, supply chain capabilities and IT systems to create an ecosystem and better serve our other brand partners. Mr. Qiu concluded.
“We are deeply committed to our customers in Greater China and know this is a market with tremendous potential for our brand,” said Mark Breitbard, President and CEO of Gap Brand: “Growth that we unlock through local partnerships with the expert market like Baozun allow us not only to connect with new and existing customers, but also to provide them with personalized and service-oriented experiences. and deep expertise in data management and digital business, Baozun has helped achieve impressive results in our online growth and Greater China market penetration over the past four years, and we are confident in our future value-creating China-for-China plans of the partner for Gap Greater China.
The acquisition of Gap Greater China
On November 8, 2022 Beijing time, Baozun’s wholly-owned subsidiary White Horse Hongkong Holding Limited entered into a share purchase agreement (the “Share Purchase Agreement”) with Gap Inc. and Gap (UK Holdings) Limited on the acquisition of 100% of the interests of two of its operating entities, which operate all of the businesses of Gap Greater China (the “Acquisition”). The principal consideration for the Acquisition is in the amount of US$40 million, subject to adjustments in accordance with the share purchase agreement up to a limit of US$50 million. The acquisition is subject to the satisfaction of customary closing conditions and regulatory approval, with the acquisition expected to be effective in the first half of 2023.
In the meantime, Baozun’s subsidiaries and Gap have entered into a series of commercial agreements whereby Gap grants Baozun the right to manufacture, market, distribute and sell Gap’s products in Greater China with local creative capabilities on a exclusive. The term of these commercial agreements is 20 years, with an initial term of 10 years renewable twice with each renewal for a term of 5 years.
About Baozun Inc.
Baozun Inc. is the leader and a pioneer in the branded e-commerce service industry and an enabler of digital commerce in China. Baozun Inc. enables a wide range of brands to grow and succeed by leveraging its end-to-end e-commerce service capabilities, omnichannel coverage, and technology-driven solutions. Its one-stop integrated and technology solutions for e-commerce services in China handle all essential aspects of e-commerce operations covering IT solutions, online store operations, digital marketing, customer service, warehousing and execution.
For more information, please visit http://ir.baozun.com.
About Gap Inc.
Gap Inc., a collection of purpose-driven lifestyle brands, is America’s largest specialty apparel company offering apparel, accessories and personal care products for men, women and children under the Gap, Old Navy, Banana Republic and Athletica. Gap Inc. uses omnichannel capabilities to connect the digital world and physical stores to further enhance its shopping experience. Gap Inc. is guided by its purpose, Inclusive, by Design, and prides itself on creating products and experiences its customers love while respecting its employees, communities and the planet.
For more information, visit www.gapinc.com.
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