Chinese garment manufacturer Dayang Trands to buy YTO Express for $2.7 bn
23 Mar 2016
Dalian Dayang Trands Co., Ltd. (Dayang Trands) a Chinese garment manufacturer and exporter, yesterday struck a deal to buy local courier company YTO Express (Logistics) Co., for 17.5 billion yuan ($2.7 billion).
Dayang Trands yesterday said in a filing with the stock exchange that it would acquire YTO Express through an asset swap and share issue.
"The company hopes to enter the courier sector by injecting good-quality assets in the delivery business via this transaction," Dayang Trands said in the filing, according to a Reuters report.
Under the deal, Dayang Trands will transfer its assets to YTO Express' shareholders, who will then own Dayang Trands.
Dayang Trands, backed by Alibaba Group, is a leading garment manufacturer and exporter in China, with over 4500 employees and annual capacity of 6 million pieces (sets).
It has over 10 manufacturing factories, specialising in a variety of clothes, including suits, blazer, pants, coats, jacket, shirt, overcoat, ladies' dress, sports coat, ski wear, corporate wear, student's uniform, down garments etc.
It has close trade relation with over 100 clients from Japan, the US, the UK, France, Italy, Germany, Spain, South Korea, and others.
In May 2015, Alibaba and Yunfeng Capital, a private equity firm co-founded by Alibaba's founder Jack Ma, reportedly acquired 20 per cent stake in YTO Express.
Founded in 2000 with only 17 staff, YTO Express today is the largest and fastest growing express delivery company in China employing more than 220,000 people in 20,000 delivery centers across the country.