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 '04, and in Hong Kong and Macau since '02.” 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 '14 with
headquarters in Shanghai.” Columbia will “own 60% 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).
