Tanachira Retail buys out HARNN for $30m
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International fashion and lifestyle brand distributor Tanachira Retail has acquired Thai health and beauty business Harnn. The THB1 billion (US$30.4 million) purchase is part of the firm’s moves to become a regional lifestyle company.
Tanachira CEO Tanapong Chirapanidchakul said: “We will use our strength and expertise to expand Harnn’s business throughout Asia, with priority markets China, Taiwan and Japan.”
Harnn products sell at more than 30 branches throughout Thailand and are distributed in 16 countries, predominantly in Asia.
The acquisition, which covers brands, intellectual property assets, and business networks will help Tanachira to reduce risk from dependence on imported brand revenue. The firm will build brand awareness for Harnn among Thai consumers before building international partnerships with current and new dealers in new international markets, focusing on Asia.
Tanachira’s CFO Aphichai Pholkosol said: “By 2020, we target Harnn contributing about 25 per cent of our total revenue at THB2.25 billion, helping us to list on the stock exchange in the second half of that year.”
Questions & Answers
Q.What is the primary motivation for Tanachira Retail acquiring Harnn?
What is the primary motivation for Tanachira Retail acquiring Harnn?
The acquisition is part of Tanachira Retail's strategy to become a regional lifestyle company. It will also help the firm reduce its risk by diversifying away from reliance on imported brand revenue.
Q.Which specific markets will Tanachira prioritise for Harnn's expansion?
Which specific markets will Tanachira prioritise for Harnn's expansion?
Tanachira Retail plans to expand Harnn's business throughout Asia. The priority markets for this expansion are identified as China, Taiwan, and Japan.
Q.How much revenue does Tanachira expect Harnn to generate by 2020?
How much revenue does Tanachira expect Harnn to generate by 2020?
Tanachira expects Harnn to contribute approximately THB2.25 billion to its total revenue by 2020. This would represent about 25 per cent of the company's total revenue that year.
Q.What is Tanachira Retail's long-term goal with this acquisition?
What is Tanachira Retail's long-term goal with this acquisition?
The company aims to list on the stock exchange in the second half of 2020. Harnn's expected revenue contribution is intended to help achieve this objective.
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