- Brand e-commerce service provider Baozun Inc BZUN has signed definitive agreements to acquire Gap Greater China in an all-cash transaction with a primary consideration of $40 million.
- Gap Greater China is a subsidiary of the American specialty apparel company Gap, Inc. GPS.
- Since December 2018, Baozun has served Gap Greater China as its e-commerce service partner, enabling it to expand its e-commerce business in Greater China.
- Baozun has also established Baozun Brand Management (BBM) as a new business line to leverage its portfolio of technologies at the service of brands.
- It believes combining its China-for-China strategy and technology and data-driven approach in product and consumer operations will empower Gap Greater China for sustainable future growth.
- In addition, affiliates of Baozun and Gap entered into a series of business arrangements through which Gap grants Baozun the right to manufacture, market, distribute and sell Gap products in Greater China with local creation capabilities on an exclusive basis.
- The acquisition is expected to be effective in the first half of 2023.
- Baozun held $468.3 million in cash and equivalents as of June 30, 2022.
- Price Action: BZUN shares closed at $4.22 on Monday.
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