Lee Hyo-sik is Finance Desk editor at The Korea Times. He manages finance-related stories on macroeconomics, banks, stocks, bonds, crypto etc. He is passionate about covering what's happening in Korea's financial industry and explaining it to both Korean and non-Korean readers. You can reach him at leehs@koreatimes.co.kr. Your insights and feedbacks are always appreciated.
E-Land buys K-Swiss for W200 bil.
By Lee Hyo-sik
Local fashion firms and private equity funds are heading overseas to take over foreign rivals in a bid to capitalize on opportunities created by prolonged economic downturn with the ultimate goal of eventually emerging as globally-competitive players.
E-Land Group, a mid-tier conglomerate specializing in fashion and retail, said Thursday that it signed a contract with American footwear maker K-Swiss, Thursday, to acquire a 100 percent stake in the latter for 200 billion won ($189 million).
``We decided to buy the entire stake in the athletic shoes maker. With this, we will be able to establish a strong foothold in the U.S. fashion market,’’ an E-Land spokesman said. ``We will nurture K-Swiss into a bigger brand by marketing its products through our sales networks in China and other Asian nations.’’
The spokesman said K-Swiss will become one of the world’s top three sports brands along with Nike and Adidas.
K-Swiss made about $550 million in 2012, with 50 percent of sales being generated in the U.S. It also maintains a strong presence in Europe and Asia.
According to fashion industry sources, MBK Partners, the country’s largest private equity firm (PEF), will soon sign a contract with Nepa to acquire a 53-percent stake in Korea’s fifth largest outdoor wear maker for 550 billion won.
MBK will take over the 53 percent stake from Nepa CEO Kim Hyung-seob and other majority shareholders. The fund also plans to buy the remaining shares from minority shareholders. The outdoor brand is estimated to be worth nearly 1 trillion won.
``We will sign the sales contract with MBK Friday,’’ a Nepa official said. ``Even after the sale, CEO Kim will continue to keep his post and manage one of the most popular outdoor brands in Korea.’’
Nepa has been gaining popularity among young consumers due to its competitive prices and sleek designs. The country’s outdoor wear market is dominated by the big five _ North Face, Kolon Sports, K2, Black Yak and Nepa.
The private equity fund reportedly decided to acquire the firm on expectations that the local outdoor market will continue to boom.