SWRAY Swire Pacific Ltd (PK)

   By Colin Kellaher 
 

Columbia Sportswear Co. (COLM) said it plans to buy the remaining 40% stake in Columbia Sportswear Commercial (Shanghai) Co., the joint venture it operates in China with a unit of Swire Pacific Ltd. (0019.HK).

The Shanghai-based venture, which began operations in January 2014, had an initial term of 20 years, but included a provision for the purchase or sale of the minority interest any time after the fifth year, Columbia said.

The Portland, Ore., maker of outdoor apparel and footwear said the venture's 2017 sales in China totaled about $168 million, generating an operating margin in the low teens. Sales are on pace for high single-digit growth in 2018.

Tim Boyle, Columbia's president and chief executive, said the acquisition "is consistent with our strategy to accelerate investment as a brand-led, consumer-first business in the areas of highest growth potential for our existing brands."

Terms of the acquisition, which Columbia expects to complete on or about Jan. 1, 2019, weren't disclosed. Swire will remain the exclusive independent distributor of Columbia Sportswear in Hong Kong and Macau.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

April 11, 2018 06:33 ET (10:33 GMT)

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