Baozun Announces Acquisition of Full Jet Limited to Accelerate Expansion of Luxury and Premium Brand Footprint
February 03 2021 - 6:00AM
Baozun Inc. (NASDAQ: BZUN and HKEX: 9991) (“Baozun” or the
“Company”), the leading brand e-commerce service partner that helps
brands execute their e-commerce strategies in China, today
announced that it has entered into a share purchase agreement with
all the shareholders of Full Jet Limited (“Full Jet”), to acquire a
100% equity interest in Full Jet. The acquisition is subject to
customary closing conditions and is expected to be completed on or
around February 10, 2021.
Final enterprise value of Full Jet represents a
12.5x multiple of Full Jet’s 2020 EBITDA, with total consideration
consisting of a 50% initial cash payment and deferred payments in
cash or equity over the following three years, subject to an annual
performance target completion result. In addition, an incentive
program is granted to key members of Full Jet’s management team,
which is also subject to the annual performance target completion
result during the same period.
Full Jet is a strategic and brand-focused
industry expert that specializes in developing go-to-market
strategies for high-end and luxury brands entering the Chinese
market. Its key business coverage includes brand development,
strategic consulting, e-commerce operations and marketing. Full Jet
has successfully leveraged its in-depth knowledge of China’s
e-commerce market to support many leading international premium and
luxury brand partners and groups. Full Jet has global offices in
Paris, Hong Kong and Shanghai, China.
According to a recent report issued by
independent third parties, China's personal luxury market was
estimated to grow by over 45% in 2020, within which online
e-commerce has grown tremendously. In September 2020, Baozun
upgraded its luxury group to a tier-1 business unit to better
leverage its analytic data, insights and resources to capture the
emerging demand. The Company believes that this strategic
acquisition of Full Jet strengthens the Company’s expertise in
business development, strategic consulting and brand management,
and expands its geographic touchpoints with premium and luxury
brands globally.
Mr. Vincent Qiu, Chairman and Chief Executive
Officer of Baozun commented, “We are excited about the acquisition
of Full Jet. Baozun and Full Jet share the ambition of helping
international luxury and premium brand partners enter China’s
fast-growing e-commerce sector. We are confident that our proven
track record of capabilities with deep luxury insights and solid
infrastructure, combined with Full Jet’s expertise in brand and
business development, will provide a compelling value proposition
for international labels looking for more strategic and empowered
services like us. By capitalizing on the strengths of both parties,
we expect to unlock the potential for future growth of premium and
luxury sectors, and we believe such initiatives will become strong
growth drivers for Baozun in generating RMB20 billion in annual GMV
within the next three to five years.”
Ms. Sandrine Zerbib, Founder and Managing
Partner of Full Jet added, “We are looking forward to beginning a
new journey with Baozun. This acquisition opens doors to tremendous
new opportunities for both of us. We are impressed with the vision
and execution of Vincent and his team that have made Baozun the
undisputable leader in China’s rapidly growing market for
e-commerce operations and services. Baozun is an ideal partner to
help us realize value through scaling-up and reaching and
converting new international brand clients. We share a vision with
Baozun that this acquisition will bring international premium and
luxury brand e-commerce to the next level.”
About Baozun Inc.
Baozun Inc. is the leader and a pioneer in the
brand e-commerce service industry in China. Baozun empowers a broad
and diverse range of brands to grow and succeed by leveraging its
end-to-end e-commerce service capabilities, omni-channel coverage
and technology-driven solutions. Its integrated one-stop solutions
address all core aspects of the e-commerce operations covering IT
solutions, online store operations, digital marketing, customer
services, and warehousing and fulfillment. For more information,
please visit http://ir.baozun.com.
About Full Jet Limited
Full Jet was founded by brand experts, with its
founder of 27 years of experience in brand building in China. It
started as a consulting agency advising fashion and sports
multinationals with regards to their China development with a focus
on positioning and distribution. It then developed its operational
services starting with offline distribution assistance, brand
management, and finally online e-commerce solutions. Leveraging its
international perspective tailored for China, it has demonstrated
its strengths in pitching and communicating with foreign premium
and luxury brands entering China or developing their China
business. For more information, please visit
http://www.fulljet.com.cn/.
Safe Harbor Statements
This press release contains forward-looking
statements. These statements are made under the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as “will,” “expects,” “anticipates,” “future,”
“intends,” “plans,” “believes,” “estimates,” “potential,”
“continue,” “ongoing,” “targets,” “guidance,” “going forward,”
“outlook” and similar statements. Statements that are not
historical facts, including quotes from management in this
announcement and statements about the Company’s strategies and
goals, are or contain forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: the Company’s operations and business
prospects; the Company’s business and operating strategies and its
ability to implement such strategies; the Company’s ability to
develop and manage its operations and business; competition for,
among other things, capital, technology and skilled personnel; the
Company’s ability to control costs; the Company’s dividend policy;
changes to regulatory and operating conditions in the industry and
geographical markets in which the Company operates; and other risks
and uncertainties. Further information regarding these and other
risks, uncertainties or factors is included in the Company’s
filings with the U.S. Securities and Exchange Commission and the
Company’s announcements, notice or other documents published on the
website of The Stock Exchange of Hong Kong Limited. All information
provided in this press release is as of the date of this press
release and are based on assumptions that the Company believes to
be reasonable as of this date, and the Company does not undertake
any obligation to update any forward-looking statement, except as
required under applicable law.
For investor and media inquiries, please
contact:
Baozun Inc.:
Ms. Wendy SunEmail: ir@baozun.com
ChristensenIn ChinaMr. Andrew McLeodPhone: +852-2232-3941E-mail:
baozun@christensenir.com
In U.S.Ms. Linda BergkampPhone: +1-480-614-3004Email:
lbergkamp@ChristensenIR.com
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