SBD/August 8, 2012/Marketing and Sponsorship

Columbia Sportswear Signs Deal With Swire Resources To Expand Sales In China

Columbia Sportswear Co. has “entered an agreement to form a joint venture with Swire Resources Ltd,” in order to “expand Columbia's sales in China as well as that of Columbia subsidiary, Mountain Hardwear,” according to Allan Brettman of the Portland OREGONIAN. Swire Resources Ltd., a subsidiary of Swire Pacific Limited, “has operated as Columbia's exclusive independent distributor of Columbia and Mountain Hardwear branded products in China since 2004, and in Hong Kong and Macau since 2002.” In China, Swire sells to “a network of wholesale dealers that, as of June 30, operated approximately 530 Columbia Sportswear retail locations and 45 Mountain Hardwear retail locations in 135 cities.” The new joint venture is “expected to begin operations in January 2014 with headquarters in Shanghai.” Columbia will “own 60 percent of the joint venture; Swire will own 40 percent, with profits and losses shared in similar proportions.” The joint venture carries “an initial term of 20 years and includes a provision for the purchase or sale of the minority interest any time after the fifth year.” A five-member board, led by Columbia President & CEO Tim Boyle, will “oversee the joint venture.” The board will include “two other members from Columbia and two from Swire” (Portland OREGONIAN, 8/8).
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