Polo Ralph Lauren Corporation recently announced it has reached an agreement to assume direct control of its wholesale and retail distribution from its licensee, Doosan Corporation, in South Korea, beginning 1 January 2011. Doosan Corporation will continue to operate as the Company’s licensee in the region through 31 December 2010. The total purchase price will be approximately USD47 million, comprised of a cash payment of USD25 million for certain assets plus an additional payment estimated at USD22 million for primarily inventory and various other assets to be determined at closing on December 31, 2010.
“Expanding and elevating our international presence is one of our highest strategic priorities,” said Ralph Lauren, Chairman and Chief Executive Officer. “South Korea is one of our largest markets, and has always been an important territory for us. It remains one of the world’s most vibrant markets for luxury goods. South Korean consumers have developed a strong appreciation for our iconic lifestyle sensibility and we are excited to build on this success.”
“Polo Ralph Lauren has a history of success in South Korea and we want to thank the Doosan Corporation and their employees for their commitment and dedication to the development of our brands in this market over the last 12 years,” said Roger Farah, President and Chief Operating Officer. “Assuming control of South Korea is another important milestone in our broader Asian growth strategy. It is a major piece of the strategy that enables us to directly operate all of Asia with greater consistency across all markets and channels in a manner that is more closely aligned with our global brand positioning and objectives. We began the development of our Asian strategy several years ago with the acquisition of Japan in 2007, followed recently by the acquisition of several other important Asian markets in January 2010, including China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Taiwan, and Thailand. Today, with the announcement of this transaction, we are looking forward to a fully integrated Asian strategy that includes South Korea, and leverages the Hong Kong-based leadership, expertise, and infrastructure we have established over the last year in order to optimize the unique opportunities of each country.”
Doosan Corporation currently distributes Polo Ralph Lauren product through approximately 175 shop-in-shops and five freestanding locations throughout South Korea.
This article was provided by Business Wire.
(Source: Business Wire)