C.Banner International buys into EtonKids
Toy retailer C.Banner International Holdings has agreed to buy a 45.78 per cent stake in EtonKids Educational Group for a cash consideration of HK$619.7 million (US$79.4 million).
EtonKids Educational, incorporated in the Cayman Islands, runs kindergartens in China. Its unaudited consolidated net profit after tax for the financial years ended August 31, 2015 and 2016, was RMB38.2 million (US$5.6 million) and RMB50.8 million respectively.
C.Banner owns Hamleys, the world’s oldest and largest toy shop, which it bought in October 2015. It also has shoe retail stores and recently acquired the Steve Madden China business.
“The EtonKids acquisition will diversify C.Banner’s business, further strengthen the group’s presence in the market for children’s products and services to achieve strong synergy with the existing toy retailing business, and broaden revenue sources,” says C.Banner chairman Chen Yixi.
He says the kindergarten education services industry in China will benefit significantly from the country’s new two-child policy.
C.Banner is optimistic about EtonKids’ business growth potential, with Chen saying it is hoped the acquisition will enable the group to achieve long-term stable growth and development.