Hc360.com Will Acquire 7 Chinese Clothing Websites For CNY120 Million
Hong Kong-listed B2B e-commerce platform Hc360.com announced that the company plans to invest CNY120 million to acquire several clothing vertical websites.
According to an acquisition letter of intent submitted by Hc360.com to HKEx, the company plans to acquire an 80.38% stake in Zhejiang Zhongfu Network Technology for CNY120.57 million.
Zhejiang Zhongfu Network Technology mainly provides information about fashion brands, textiles, accessory materials, and textile equipment files in the clothing industry. The company operates seven websites, including Efu.com.cn, Yifu.net, 51fashion.com.cn, 5143.cn, Nynet.com.cn, Kidsnet.cn, and T100.cn.
In addition, this potential transaction includes a valuation adjustment mechanism. The related sellers promise to drive Zhejiang Zhongfu Network Technology to meet the annual net profit targets of CNY10 million, CNY13 million and CNY16.9 million over the three years following the completion of the acquisition. However, Hc360.com claimed that it is still a letter of intent and the company has not yet reached any conclusive agreement with the sellers.
This is reportedly the second acquisition deal of Hc360.com in 2015. In March 2015, Hc360.com acquired three websites, Zol.com.cn, Zol.com, and Ea3w.com for CNY1.5 billion and the deal was recently closed.