Burberry acquires Chinese franchise retail operations
Burberry, the global luxury company has entered into an agreement to acquire the stores and related assets in China currently operated by its long-standing franchisees. This transaction is in line with Burberry’s strategy of unifying the brand around the world, while at the same time increasing its exposure to retail and to high growth luxury markets. The purchase price is approximately £ 70 m in cash, subject to completion adjustments. The transaction is expected to add up to £ 20 m to group operating profit in financial year 2011/12.
