Last Updated: 2008.08.01
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Objectives of M&A
We have two objectives in our M&A activities. The first is to acquire businesses in new areas to strengthen our business portfolio. The second is to gain access to new business platforms for greatly expanding overseas activities of UNIQLO and other Group businesses.
In strengthening our portfolio, we aim to develop our global brand businesses, by purchasing competitive brands capable of global expansion in the affordable luxury market, such as COMPTOIR DES COTONNIERS. Among the world’s fashion apparel markets, the affordable luxury market has the highest growth potential, and we believe that in this market, too, an SPA enterprise.integrated from product design through manufacturing, marketing, and sales.will be able to prove its mettle.
Regarding the second objective of gaining access to new platforms, we believe that securing business bases through investments in and acquisitions of existing local enterprises overseas is the best possible way to accelerate the growth of UNIQLO and other Group brands in overseas markets.
Through M&A, FAST RETAILING aims to secure talented professionals who bring a global view to their work, and, at the same time, hopes to remain a dynamic and innovative group of enterprises by offering opportunities to employees who share the Group’s vision.
Investment Criteria and Decision-Making Process
The two criteria in selecting M&A deals are growth potential and profitability. The key condition related to growth potential is whether the acquiree has a good brand that has the potential to develop globally. COMPTOIR DES COTONNIERS and lingerie brand PRINCESSE TAM.TAM are good examples of such brands. If the acquiree has a good brand with a solid underlying brand concept, we will actively share our infrastructure.the financial resources of the FAST RETAILING Group, our know-how in store operations, sales planning, inventory management, production systems in China, and information systems.to realize high growth and profitability.
When making investment decisions, M&A proposals are prepared by a specialized unit and then assessed by related departments and officers and directors. Thereafter, the proposals are subjected to careful examination by the Board of Directors, which includes three external directors. Examination of proposed M&A deals includes the valuation of assets to be acquired, the projected return on investment, and the analysis of synergies with other Group businesses.
Going forward, FAST RETAILING will consider acquiring enterprises with the potential for global development that are capable of attaining annual net sales of \100 billion or more and a ratio of ordinary income to net sales of 15% or more. We intend to actively pursue our Group and M&A strategy, invest between \300 billion and \400 billion in acquisitions, as well as aim to achieve high and sustained growth of the Group.
Strategic Milestones of the FAST RETAILING Group
2004
- January
- Acquired an equity stake in Link International Co., Ltd., developer of the THEORY brand
2005
- March
- Acquired ONEZONE CORPORATION
- May
- Obtained management control of NELSON FINANCE S.A.S., developer of the COMPTOIR DES COTONNIERS brand
2006
- February
- Acquired PETIT VEHICULE S.A., developer of the PRINCESSE TAM.TAM brand
- March
- Established G.U. CO., LTD.
- April
- Invested in CABIN and concluded an operating alliance
- November
- Invested in VIEWCOMPANY CO.,LTD.
2007
- August
- Made CABIN into a subsidiary through a takeover bid
2008
- February
- Made VIEWCOMPANY CO., LTD into a subsidiary through a takeover bid
Group Net Sales by Business in Fiscal 2007
Group Sales Scenario
