03 Jan Columbia Announces Closing in Buyout of China JV With Swire Resources
Columbia Sportswear Co. on Wednesday announced that effective January 2, 2019, it has closed its buyout of the remaining 40 percent interest in Columbia Sportswear Commercial (Shanghai) Co., the joint venture in China with Swire Resources Ltd., a subsidiary of Swire Pacific Ltd.
“We thank Swire Resources for contributing to the success and growth of the Columbia brand in China. They have been an exceptional partner for us over the years and we look forward to continuing our strong relationship with them in Hong Kong and Macau,” said Tim Boyle, Columbia’s president and CEO. “We are very pleased with the positioning of the Columbia brand, and are committed to investing in the continued long-term success of Columbia in the crucial Chinese market. The acquisition is consistent with our strategy to accelerate investment as a brand-led, consumer-focused business in the areas of highest growth potential for our existing brands.”
The joint venture began operations on January 1, 2014, with headquarters in Shanghai. Columbia Sportswear owned 60 percent of the operation and Swire owned 40 percent, with profits and losses shared in similar proportions.
Future plans include continued investments in building the Columbia brand in China, as well as expansion of direct and dealer-operated retail locations. Columbia also intends to maintain the existing management team, staff, dealers, and distribution networks that have helped the Columbia brand flourish in China.
As previously announced, John Soh will become the general manager of Columbia Sportswear Commercial (Shanghai) Co. in mid-February 2019.
Swire Resources will continue to serve as the exclusive independent distributor of Columbia Sportswear in Hong Kong and Macau.