Some people may still remember well how Japanese acquired US companies in 80's and 90's. In the 21st century, China may follow the steps of Japan. China has not only the appetite but also a deep pocket. By September 2008, China's foreign exchange reserves surfed $1.9 trillion. Here is one of a recent transactions that not many people are aware of.
Kellwood Company (NYSE:KWD) announced on November 6, 2007 [before its being acquired by SunCapital that its Board of Directors unanimously approved the sale of its Smart Shirts manufacturing operations as well as related real estate assets in two separate transactions that brought Kellwood gross proceeds of approximately $161 million in cash in the aggregate. The Company expected to utilize the proceeds from the transactions to repurchase shares and reduce debt. The repurchase of shares would be in addition to the previously approved $50 million stock repurchase program announced in September 2007.
The Company announced that Youngor Group Co., Ltd. (Youngor Group) agreed to acquire Kellwood’s Smart Shirts business for approximately $120 million in cash. Separately, the Company sold its Smart Shirts real estate assets in Hong Kong to Bright Treasure Development Ltd. for approximately $41 million in cash. Kellwood expected a pre-tax gain on the sale of the Smart Shirts business and Hong Kong building of approximately $10 million.
Smart Shirts
Smart Shirts is a leading manufacturer, marketer, seller and distributor of woven and knit garments - principally men's shirts - around the world. While primarily a manufacturer for private brands, this business also designs, makes, and sells licensed brands of men’s shirts including Nautica, Claiborne, Axcess A Claiborne Company, Concepts by Claiborne, O Oscar, an Oscar de la Renta Company, and Perry Ellis. Smart Shirts has 14 manufacturing facilities located in the People’s Republic of China , Hong Kong , Sri Lanka and the Philippines .
Youngor Group Co., Ltd.
Youngor Group Co., Ltd is a public company listed in Shanghai Stock Exchange (SHG600177). Youngor Group Co., Ltd.’s principal activities are designing, manufacturing, selling and trading clothing products and accessories. It carries the “Youngor” brand for men’s clothing, which includes shirts, pants, suits, ties, T-shirts and pajamas, among others. In addition, the Company is one of China ’s largest manufacturers of high grade yarn dyed woven fabrics. Other activities include developing, leasing and selling condominium and residential buildings and operating hotels. It also provides transportation and warehouses, technical consultation, management and investment services and distribution and selling of electrical and thermal power. Headquartered in Ningbo , China , operations are carried out in the People’s Republic of China and other countries.
