Burberry Group Buys Chinese Operations For GBP70M

16th Jul 2010 07:06

LONDON (Dow Jones)--Burberry Group PLC (BRBY.LN), a global luxury company, Friday announces that it has entered into an agreement to acquire the stores and related assets in China currently operated by its long-standing franchisees. MAIN FACTS: -The purchase price is approximately GBP70 million in cash, subject to completion adjustments. -The transaction is expected to add up to GBP20 million to group operating profit in financial year 2011/12. -Will accelerate growth by further capitalizing on nearly 20 years of market presence and our high brand awareness in China. -Plans to drive productivity in existing stores and open new stores, while rapidly implementing the company's digital marketing initiatives to further reinforce the brand in China. -Shares closed Thursday at 790.5 pence. By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires July 16, 2010 02:06 ET (06:06 GMT)