Baozun Acquires Gap Greater China For $40M Primary Cash Consideration

• Brand e-commerce service provider Baozun Inc (NASDAQ: 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.  (NYSE: 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.

See more from Benzinga

• Renault Expands Partnership With Google To Strengthen Digital Transformation

• British Advertising Giant WPP Reveals CFO Transition

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.