Benzinga | Sep 30, 2021 06:04AM EDT

Baotong, Baozun's Logistics Subsidiary, To Receive $217.9M Strategic Investment From Cainiao Network

Baozun Inc. (NASDAQ:BZUN) ("Baozun" or the "Company"), the leading brand e-commerce service partner that helps brands execute their e-commerce strategies in China, announced today that Baozun and its wholly-owned subsidiary, Baotong Inc. ("Baotong"), have entered into a Share Purchase and Subscription Agreement with Cainiao Network, for its 30% equity investment ("Investment") in Baotong, Baozun's warehousing and fulfillment solution subsidiary. Baozun, Baotong and Cainiao Network have also entered into a Business Cooperation Agreement ("BCA") to further explore and develop brand e-commerce opportunities.

The payment for the Investment is $217.9 million and the Investment is subject to customary closing conditions. The Company believes Cainiao Network's Investment in Baotong will enable Baotong to leverage Cainiao Network's nation-wide rich resources to capture growing opportunities in China's e-commerce industry. This Investment will enable the Company to leverage Cainiao Network's national logistics expertise and know-how of standardization, to greatly improve its cost structure and enrich its service portfolio.

Concurrently, Baozun, Baotong and Cainiao Network have entered into the BCA, pursuant to which the parties will collaborate in developing cutting edge solutions in customized, high-value and digitalized logistics services. Baotong and Cainiao Network will work closely to further develop and explore e-commerce opportunities, and expand sophisticated logistics service scenarios.

Mr. Peter Liang, Vice President of Baozun and General Manager of Baotong commented, "Quality and comprehensive end-to-end logistics services are critical to empower our brand partners to provide the ultimate customer experience to highly demanding Chinese consumers. We are thrilled to welcome Cainiao Network as a strategic investor and business partner that will help us to leverage its nationwide network to develop end-to-end services as we execute our sustainable growth plan, in particular with our rapid expansion in the high-end sector. We are confident that this combination of our extensive resources and know-how will help us deliver additional value to our existing and future brand partners."

Mr. Yong Shuai, Vice President of Cainiao Network Supply Chain, commented: "We are pleased to deepen our collaboration with Baozun. We expect this collaboration will be a value driver as we expand our resources to penetrate the high-end logistics service sector. We believe this is just a first step, and we look forward to working closely with Baozun to build high quality services for e-commerce in China."