Benzinga | Feb 3, 2021 12:55PM EST

Baozun Expands Luxury Brand Footprint In China With Full Jet Acquisition

* Baozun Inc. (NASDAQ: BZUN) inked an agreement to acquire Full Jet Limited to tap the flourishing Chinese personal luxury market.

* The acquisition is expected to complete by February 10, 2021, subject to conditions.

* The purchase price is valued at 12.5 times Full Jet's 2020 EBITDA, consisting of a 50% initial cash payment and a performance-based earnout consideration over the next three years. Additionally, there is an incentive program for Full Jet's management team, subject to an earnout clause.

* The company expects acquisition synergies worth RMB20 billion (roughly $3.1 billion) in the form of annual Gross Merchandise Value (GMV) over the next three to five years.

* Baozun had $663.7 million (RMB4,506.4 million) in cash equivalents on September 30, 2020.

* Price action: BZUN shares are trading higher by 9.43% at $42.80 on the last check Wednesday.

* Related News: Alibaba Says Luxury Brand Coach Saw Singles Day Sales Rise 700%