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| Further Enriches Brand Portfolio and Broadens Market Shares Worldwide |
HONG KONG, Apr 14, 2014 - (ACN Newswire) - China Haidian Holdings Limited ("China Haidian" or the "Group"; stock code: 256), a watches and timepieces designer, manufacturer and retailer owning several celebrated Chinese and global watch brands, announced its wholly-owned subsidiary, International Volant Limited has entered an acquisition agreement with a watch company in the United Kingdom The Dreyfuss Group Limited ("Dreyfuss") to acquire the entire issued share capital of the latter. With the well-established platform built by Dreyfuss both in the United Kingdom and overseas markets, this acquisition is set to significantly strengthen China Haidian's leading position in the watches and timepieces industry.
Total consideration of the acquisition amounted to GBP27.0 million (equivalent to approximately HK$351.0 million). The consideration is subject to downward adjustments depending on several factors including Dreyfuss' consolidated profit after taxation and consolidated net asset value in 2013 and 2014. The Group intended to finance the acquisition by its own internal resources. Dreyfuss recorded a significant growth in profit after taxation from approximately GBP1.5 million (equivalent to approximately HK$19.5 million) in 2012 to approximately GBP2.3 million (equivalent to approximately HK$29.9 million) in 2013. As at 31 December 2013, the unaudited consolidated net asset value of Dreyfuss was approximately GBP10.8 million (equivalent to approximately HK$140.4 million).
Founded in 1895, Dreyfuss is principally engaged in watch design and selling, both to the United Kingdom and overseas markets, and of watch manufacturing and repair. Its portfolio includes Rotary, the number 1 Swiss mid-market watch brand in the United Kingdom with a presence in over 45 countries worldwide, Swiss premium Dreyfuss & Co. brand and English premium J & T Windmills brand. Its international business encompasses the Far East, including Hong Kong and China, as well as the Middle East, through a mix of regional retailers and third party distributors. Predominantly, Dreyfuss generated its sales in the United Kingdom through high street watch and jewellery chains, independent stores and other specialty channels.
Since Asia is a strategic region for growth for Dreyfuss, given the extensive market potential in the region for brands positioned in the mid market "sweet pot", there is huge untapped demand among Asian mid-market consumers for Dreyfuss' affordable Swiss made range of timepieces backed up by over 118 years of Swiss watch making heritage and credentials. This strategy lies behind Rotary's recent signing of a four-year sponsorship deal with Chelsea Football Club ("Chelsea"), which has a huge, highly engaged and fast-growing aspirational Asian fan base which will, by association, fuel high levels of brand awareness for Rotary in this important region. With Chelsea's continued success on the pitch, it is likely to fuel further growth globally supported by Rotary's Brand Ambassador Frank Lampard who seeks to complete his 13th season at the club with silverware.
Mr. Hon Kwok Lung, Chairman of China Haidian, said, "The acquisition provides an opportunity for us to expand our portfolio by adding watch brands with strong heritage and consumer appeal. Going forward, we will promote Dreyfuss' watch brands internationally and to leverage on our distribution network in the PRC to benefit from the enormous potential of China's imported watch market in particular the mid-price segment. With our strong reputation in the watches and timepieces market, combined with the well-established and strongly recognized brands owned by Dreyfess, we are confident in the ability to create greater value for our shareholders."
Contact:
Strategic Financial Relations Limited
Joanne Lam +852 2864 4816 joanne.lam@sprg.com.hk
Cornia Chui +852 2864 4853 cornia.chui@sprg.com.hk
Janet Fong +852 2864 4817 janet.fong@sprg.com.hk
Website: www.sprg.com.hk
Topic: Press release summary
Source: Citychamp Watch & Jewellery Group Limited
Sectors: Daily Finance, Daily News
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From the Asia Corporate News Network
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