Columbia closes on buyout of its China joint venture

By

Gabriella Lacombe

Published
Jan 3, 2019

Columbia has closed on its previously announced buyout of the remaining 40 percent interest in Columbia Sportswear Commercial (Shanghai) Company, the sportswear company's joint venture in China with Swire Resources Limited. 

A subsidiary of Swire Pacific Limited, Swire Resources will continue to serve as the exclusive independent distributor of Columbia's range of outdoor apparel and accessories in Hong Kong and Macau.

“[Columbia is] committed to investing in the continued long-term success of Columbia in the crucial Chinese market," said Tim Boyle, president and chief executive officer of Columbia. "The acquisition is consistent with our strategy to accelerate investment as a brand-led, consumer-focused business in the areas of highest growth potential for our existing brands.”

Columbia said it will maintain its existing Chinese management team, staff, dealers, and distribution networks after the acquisition.

The company's future plans in the region include further strategies and investments to boost the brand's name in China, in addition to the "expansion of direct and dealer-operated retail locations." 

The longterm success or failure of Columbia is set to studied by other U.S. brands and retailers looking to break into the lucrative Chinese market, particularly in the wake of Macy's' closing its business in the region. 

This buyout follows the company's appointment of John Soh to the position of general manager of Columbia Sportswear Commercial (Shanghai) Company, effective February of 2019.

​The joint venture began operations on January 1 of 2014 with headquarters in Shanghai. Columbia then owned 60 percent of the operation while Swire owned 40 percent.