Turkish firm to acquire Adams
Güncelleme Tarihi:
by Ayten Güven Kaya - Referans
OluÅŸturulma Tarihi: Mart 04, 2009 00:00
ISTANBUL - Wenice Kids, a Turkish childrenswear brand that has expanded rapidly within the last two years, agrees to buy 40 percent of Adams Kids, a British brand that is in trouble due to the global crisis. Wenice will pay $6 million to acquire 40 percent of Adams Kids
Wenice Kids, a childrenswear brand that has managed to quintuple its turnover within the last two years, has become a model company that creates opportunities out of the global crisis.Â
KuÅŸam Tekstil, the owner of Wenice Kids, has reached an agreement in principle to acquire 40 percent of Adams Kids, one of the largest childrenswear brands in Britain, which faces a bottleneck due to the global crisis. The acquisition is valued at 4.2 million pound sterling, or $6 million.
Wenice Kids aims to rank among the world’s top 10 childrenswear brands by 2010, said Kuşam Tekstil Managing Director Oktay Özdemir.
Aiming to acquire the whole company
Wenice Kids, which will provide 10 million pounds production support as well as design and logistics support for the brand, with which it has been in talks for a month, plans to acquire the whole brand that reaps 158 million pounds in turnover within three years.
Kuşam Tekstil, which hosted Adams Kids’ owner John Shannon on Friday in Istanbul, is expected to sign an official deal with the British firm in three weeks.
KuÅŸam Tekstil will shift to Turkey the manufacture of the firm, which has 90 percent of its production made in Far East. Following the deal, 0-5 age group will be sold under the name of Adams Kids while 5-12 age group will be sold under the Wenice Kids brand. The British brand currently addresses at the 0-8 age group.
Informing on the visit of John Shannon at production facilities in Istanbul, Özdemir said, "He said he was deeply affected from the growth of Wenice Kids.
When he saw our organizational structure, he predicted that we might outgrow Adams Kids by three- or four-fold within a short period of time." Özdemir also said that the aim is to double Adams Kids in terms of growth by 2010.
The bargains between KuÅŸam and Adams Kids started a month ago. Due to the bottleneck stemming from the global crisis, Adams Kids was taken under administration in Britain.
Following the visit in Kuşam Tekstil’s stores and facilities in Istanbul’s Güneşli and Merter districts, the brand’s owner sent an e-mail to the firm.
"First of all, I would like to express that I am very impressed by Wenice’s striking growth, quality, power, efficient production, wide collection and its experience in retail management," said Shannon in his statement. "I believe our firms will benefit each other greatly in different areas.
We have agreed on Wenice’s acquiring prominent amount of shares in Adams, and a possibility to purchase the remaining in the future. We will be ready to negotiate the other details within two weeks."
The actual value of the firm is approximately 100 million pounds, said Özdemir. "Following the deal, we will move the brand’s design office from Britain to Turkey. Around 20 designers will move to Istanbul. We will shift to Turkey the production, 90 percent of which is made in Far East at present."
Next winter, collection production will be made in Turkey, he also said, adding that the firm’s logistics center will be shifted to Istanbul, too.
Bright success in global markets
KuÅŸam Tekstil, which started apparel manufacture 11 years ago, established Wenice Kids brand in 2000. The firm, which had 56 stores and reaped 20 million euros in turnover two years ago, has reached 378 stores, including 50 in Turkey, and a turnover of 100 million euros by reducing costs with the Turkish Quality System.
The company also produces special collections for disabled children and premature babies. The company, which introduced campaigns to encourage the consumption of the Turkish-made products, is also the founder of the idea of MOL stores, which was almost plundered due to a 90 percent price reduction on its opening day.
Adams Kids, founded 75 years ago by Amy Adams, is among Britain’s leading specialist childrenswear retailers.
The brand, which addresses at the 0-8 age group, reaps approximately 158 million pounds annually with its 281 stores, including 120 in Britain.
Having a strong presence in Gulf countries, the brand has many stores in Qatar, Saudi Arabia, Dubai and Kuwait.
KuÅŸam Tekstil, the owner of Wenice Kids, has reached an agreement in principle to acquire 40 percent of Adams Kids, one of the largest childrenswear brands in Britain, which faces a bottleneck due to the global crisis. The acquisition is valued at 4.2 million pound sterling, or $6 million.
Wenice Kids aims to rank among the world’s top 10 childrenswear brands by 2010, said Kuşam Tekstil Managing Director Oktay Özdemir.
Aiming to acquire the whole company
Wenice Kids, which will provide 10 million pounds production support as well as design and logistics support for the brand, with which it has been in talks for a month, plans to acquire the whole brand that reaps 158 million pounds in turnover within three years.
Kuşam Tekstil, which hosted Adams Kids’ owner John Shannon on Friday in Istanbul, is expected to sign an official deal with the British firm in three weeks.
KuÅŸam Tekstil will shift to Turkey the manufacture of the firm, which has 90 percent of its production made in Far East. Following the deal, 0-5 age group will be sold under the name of Adams Kids while 5-12 age group will be sold under the Wenice Kids brand. The British brand currently addresses at the 0-8 age group.
Informing on the visit of John Shannon at production facilities in Istanbul, Özdemir said, "He said he was deeply affected from the growth of Wenice Kids.
When he saw our organizational structure, he predicted that we might outgrow Adams Kids by three- or four-fold within a short period of time." Özdemir also said that the aim is to double Adams Kids in terms of growth by 2010.
The bargains between KuÅŸam and Adams Kids started a month ago. Due to the bottleneck stemming from the global crisis, Adams Kids was taken under administration in Britain.
Following the visit in Kuşam Tekstil’s stores and facilities in Istanbul’s Güneşli and Merter districts, the brand’s owner sent an e-mail to the firm.
"First of all, I would like to express that I am very impressed by Wenice’s striking growth, quality, power, efficient production, wide collection and its experience in retail management," said Shannon in his statement. "I believe our firms will benefit each other greatly in different areas.
We have agreed on Wenice’s acquiring prominent amount of shares in Adams, and a possibility to purchase the remaining in the future. We will be ready to negotiate the other details within two weeks."
The actual value of the firm is approximately 100 million pounds, said Özdemir. "Following the deal, we will move the brand’s design office from Britain to Turkey. Around 20 designers will move to Istanbul. We will shift to Turkey the production, 90 percent of which is made in Far East at present."
Next winter, collection production will be made in Turkey, he also said, adding that the firm’s logistics center will be shifted to Istanbul, too.
Bright success in global markets
KuÅŸam Tekstil, which started apparel manufacture 11 years ago, established Wenice Kids brand in 2000. The firm, which had 56 stores and reaped 20 million euros in turnover two years ago, has reached 378 stores, including 50 in Turkey, and a turnover of 100 million euros by reducing costs with the Turkish Quality System.
The company also produces special collections for disabled children and premature babies. The company, which introduced campaigns to encourage the consumption of the Turkish-made products, is also the founder of the idea of MOL stores, which was almost plundered due to a 90 percent price reduction on its opening day.
Adams Kids, founded 75 years ago by Amy Adams, is among Britain’s leading specialist childrenswear retailers.
The brand, which addresses at the 0-8 age group, reaps approximately 158 million pounds annually with its 281 stores, including 120 in Britain.
Having a strong presence in Gulf countries, the brand has many stores in Qatar, Saudi Arabia, Dubai and Kuwait.