Baozun Expands Luxury Brand Footprint In China With Full Jet Acquisition
- Baozun Inc. (NASDAQ: BZUN) inked an agreement to acquire Full Jet Limited to tap the flourishing Chinese personal luxury market.
- The acquisition is expected to complete by February 10, 2021, subject to conditions.
- The purchase price is valued at 12.5 times Full Jet’s 2020 EBITDA, consisting of a 50% initial cash payment and a performance-based earnout consideration over the next three years. Additionally, there is an incentive program for Full Jet’s management team, subject to an earnout clause.
- The company expects acquisition synergies worth RMB20 billion (roughly $3.1 billion) in the form of annual Gross Merchandise Value (GMV) over the next three to five years.
- Baozun had $663.7 million (RMB4,506.4 million) in cash equivalents on September 30, 2020.
- Price action: BZUN shares are trading higher by 9.43% at $42.80 on the last check Wednesday.
- Related News: Alibaba Says Luxury Brand Coach Saw Singles Day Sales Rise 700%
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