Burberry, the global luxury company, announces that it has entered into an agreement to acquire the stores and related assets in China currently operated by its long-standing franchisees.
This transaction is in line with Burberry’s strategy of unifying the brand around the world, while at the same time increasing its exposure to retail and to high growth luxury markets. The purchase price is approximately £70m in cash, subject to completion adjustments. The transaction is expected to add up to £20m to group operating profit in financial year 2011/12.
Angela Ahrendts, Chief Executive Officer, commented:
“The acquisition of Burberry's store operations in mainland China will allow us to further leverage our proven brand and business strategies in this high growth luxury region. With a solid foundation of 50 stores across 30 cities, operational expertise and strong brand momentum, this is an optimal time for Burberry to integrate this business.
Looking forward, we will accelerate growth by further capitalising on nearly 20 years of market presence and our high brand awareness in China. We plan to drive productivity in existing stores and open new stores, while rapidly implementing our digital marketing initiatives to further reinforce the brand in this exciting market.”
This transaction is in line with Burberry’s strategy of unifying the brand around the world, while at the same time increasing its exposure to retail and to high growth luxury markets. The purchase price is approximately £70m in cash, subject to completion adjustments. The transaction is expected to add up to £20m to group operating profit in financial year 2011/12.
Angela Ahrendts, Chief Executive Officer, commented:
“The acquisition of Burberry's store operations in mainland China will allow us to further leverage our proven brand and business strategies in this high growth luxury region. With a solid foundation of 50 stores across 30 cities, operational expertise and strong brand momentum, this is an optimal time for Burberry to integrate this business.
Looking forward, we will accelerate growth by further capitalising on nearly 20 years of market presence and our high brand awareness in China. We plan to drive productivity in existing stores and open new stores, while rapidly implementing our digital marketing initiatives to further reinforce the brand in this exciting market.”
