Giordano's $67 million Purchase of Middle Eastern Companies

Giordano International Co., Ltd. recently issued an announcement announcing that it had signed an understanding of memorandum with ETA Group on April 15. It will invest 67 million U.S. dollars to purchase Giordano Middle East shares. After the transaction is completed, its shareholding ratio will increase from 20% to 84%. . Giordano International also announced that it will acquire 7.34% of the ETA Group Giordano Australia.

It is reported that Giordano International currently owns 86% of Giordano Australia. In addition, Giordano International will transfer an important part of current Giordano’s existing business in Dubai to a wholly owned subsidiary of Giordano, FZCO.

For the transaction, Giordano said that the management of the company is very familiar with the existing management team of Giordano Middle East and expects the management of the company will further expand the market outside Giordano in East Asia (ie Middle East, Africa, Asia Minor, China) after combining this management team. Asia and Central Eastern Europe and other developing markets) platforms.

According to public information, Giordano sold 5.614 billion yuan in 2011, a year-on-year increase of 18.7%. Among them, gross profit reached 3.283 billion yuan, a year-on-year increase of 20.2%. The annual net profit was 728 million yuan, a year-on-year increase of 35.6%.

In terms of sub-regional sales, China’s mainland is still the largest market in Giordano, with annual sales of 2.029 billion yuan, a year-on-year increase of 13.9%, accounting for 36% of total sales. Sales in Hong Kong and Taiwan were 1.759 billion yuan, a year-on-year increase of 21.6%, accounting for 31% of all sales. Asia Pacific and other regions sold 1.328 billion yuan, a year-on-year increase of 19.7%. In addition, the number of Giordano retail stores in 2011 reached 2,671, and 318 new stores were added. Among them, China added 184 stores.