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

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.