Chapter 319 Meat rotten in the pot

"According to the idea I discussed with you, after I returned to France, I started looking for a company that meets our requirements."

"The first thing that comes to mind is the Bosak Group. After all, the Bosak Group itself is a European textile giant, and it also owns luxury brands such as Dior."

“Before that, it was sold to the Willot Group due to poor management.”

"But the Willot Group is controlled by French state capital, and its taking over Bosak is somewhat passive."

"I had asked Willot before whether there was any intention to sell Bosak. At that time, they did not agree, but they did not reject it completely either."

"Later, I learned from a friend that there were also disagreements within the Willot Group regarding the sale of the Bosak Group."

"Because Bosak's current debt is too high and its market performance is very poor, after Willot Group took over, it did not make a profit but operated with debt."

"This is a huge burden for the Willot Group itself, because the Willot Group's current operating conditions are also not good."

"If this continues, the Willot Group itself will be dragged into bankruptcy."

"So a few days ago, someone from the Willot Group contacted me again and revealed that they were interested in selling the Bosak Group."

"But their offer is not low. I need to discuss it with you, Vic."

Pierre Cardin spoke seriously to Li Changhe at this moment.

After listening to this, Li Changhe smiled and asked, "How much is the price?"

"Seventy million dollars!"

Pierre Cardin spoke seriously to Li Changhe.

It is 1980, and the US dollar has not yet flooded the world. 7000 million US dollars is already a very high figure.

“Does this include the liabilities of the Bosak Group?”

Li Changhe thought for a moment and continued to ask Pierre Cardin.

"Including, the current debt of the Bosak Group is not too much. I looked at the financial statements and it is about 52 million US dollars. The Willot Group still wants to make a profit from us."

"To compensate for their own financial difficulties."

"But the Bosak Group is also the most suitable company for us because it owns Dior."

"Although our latest suitcases can be made into a luxury brand, it is not enough to rely on Pierre Cardin's popularity, because Pierre Cardin has sunk into the middle market over the years."

"In comparison, Dior's brand value combined with its travel bags can make this product sell at a top price!"

"Similarly, the novelty and convenience of the luggage product could draw a large number of customers back into Dior's fashion stores."

"They have the money to buy luxury luggage, so they won't mind spending a little more to match it with a suitable outfit or buy a handbag in a matching color."

"In this way, we can also try to increase Dior's sales by leveraging the market development of travel luggage."

The wealthy never need to be frugal when it comes to spending; all they care about is suitability and their desire at the time.

Therefore, for luxury goods, once customers enter a store, they usually do not just buy a single product.

Pierre Cardin believed that the convenience of suitcases would surely attract many new wealthy customers to Dior's stores, thereby increasing Dior's profits.

"Pierre Cardin's travel bags can impact the mid-level business market, including major airlines."

"As for the most basic mass market, it is what you said, using ordinary products to expand it."

“Similarly, the Bosak Group can also provide the textile technology and workers you need.”

Pierre Cardin analyzed it carefully to Li Changhe. Li Changhe listened carefully. According to Pierre Cardin's analysis, the combination of suitcases and Bosack Group is indeed a win-win cooperation.

The prerequisite is that Li Changhe pays 70 million US dollars.

"Okay, then that's 70 million dollars!"

Li Changhe then agreed without hesitation.

Li Changhe estimated that the price offered by Willot Group was not too ridiculous, because he remembered that by next year, Willot Group would go bankrupt.

Then the French government took over Bossac, but after another two years, it could no longer operate, so the Bossac Group was auctioned off and was eventually bought by Bernard Arnault for $100 million.

So after this comparison, Li Changhe felt that he could accept 70 million US dollars.

More importantly, price is not an issue for him at all. What he values ​​most is the Bosak Group's textile technology and its sales channels in Europe and the United States.

This is an important shell company for upgrading the national textile industry and opening up its garment industry plan.

Therefore, he will not simply evaluate the company based on market value.

Pierre Cardin was quite surprised to hear Li Changhe agreed without hesitation.

Seventy million dollars!
This was definitely an acquisition of a large sum, even though he had inquired about the assets of the shipping tycoon's family and knew they had the ability to do so.

But Pierre Cardin was still a little shocked that such a huge amount of funds could be agreed upon at once.

"Vic, don't you need to think about it again?"

Pierre Cardin asked again cautiously.

"It's all right, Per. This is not more than I expected."

"But in this case, your stake in the new company may be less."

Li Changhe said to Pierre Cardin with a smile.

Their original agreement was to convert the shares into shares based on Li Changhe's investment and Pierre Cardin's brand value and influence.

However, in Hong Kong Island, the two parties only discussed the cooperation model but did not sign an agreement. The reason is that Pierre Cardin needs to find a suitable acquisition target first and then negotiate based on the amount of capital injection.

And now, Li Changhe wants to pay 70 million US dollars in one go, which also means that Pierre Cardin's shares in the new company will be compressed to a relatively low amount.

After all, no matter how high the brand value of Pierre Cardin is, it is limited nowadays.

"Of course, I understand that. I took that into consideration when I came to talk to you about this."

"After all, my money really can't compare to your family's!"

"But I have a hunch that working with you will make me a great success, so I don't mind the reduction in shares."

Pierre Cardin spoke seriously to Li Changhe at this moment.

Li Changhe nodded and said, "Of course, believe me, Per, we will build a world-class luxury clothing group together."

Thinking about what Wells had told him, that Pierre Cardin was a homosexual, Li Changhe now felt that this was actually good news.

Because this means that Pierre Cardin may not have descendants. Li Changhe remembers that this designer did not have any offspring in later generations.

The Pierre Cardin brand, which has no heirs to inherit, has now become a piece of fat meat in Li Changhe's eyes.

Sooner or later, the meat will rot in the pot.

(End of this chapter)