Let us talk about acquisitions. The acquisition is defined as the process when one company purchases the shares or the stakes of the other company, normally the whole of shares. This move is done so that company can have full control over the other company. When the company buys 50% or more than the shares and assets of the targeted company, it has all the right to take part in the decision-making of the targeted company.
One thing which needs to be noted is that people often interchangeably use the terms acquisitions and takeovers. They somewhat have a similar meaning but then they have a difference even. An acquisition is a purchase in which both the parties involved which are the firms are in cooperation. They both co-operate with each other. Takeover on the other hand occurs when the targeted company is in opposition and is not cooperating. Takeovers normally are hostile takeovers, since the targeted company is not in consent of the transaction.
Examples of the largest acquisitions
Pfizer and Warner-Lambert – In the year 2000, an acquisition was made, in which Pfizer bought Warner-Lambert for USD 90 billion. Both of the companies were operating in the drug industry and this deal is said to be one of the most hostile acquisitions taken place in history. Warner-Lambert actually was to be acquired by a consumer goods company, American Home Products.
But American Home Products walked away from the deal, thus causing a big problem for Warner relating to large breakup fees. It is when Pfizer came into the picture and acquired Warner-Lambert. This acquisition resulted in the creation of the second-largest drug company in the United States of America and Pfizer got the control of Lipitor, which was a highly sought drug, and which amounted to USD 13 billion.
Google and Android– In the year 2005, Google acquired Android, which was at that time an unknown mobile startup company. This deal was worth USD 50 million. This deal benefited Google in that it gave it the tools that were required to compete in the market which was dominated by Microsoft and Apple. This deal is the reason that 47% of U.S. smartphone owners use a Google Android device, according to a survey done in May 2020.
Announcement of the acquisition made
Iconix Lifestyle India will be acquiring the IP Rights in India of Lee Cooper, which is a British brand, as announced on October 27, 2021. The amount of the deal has not been undisclosed . On the further details of the deal, it has been told that this acquisition will give the opportunity to Iconic Lifestyle India to expand and broaden its brand portfolio in the Indian market. This will be done with the help of Lee Cooper, which has a huge presence in the Indian market. Iconix Lifestyle India will be using the distribution channel and supply chain of Lee Cooper and will strengthen its marketing and brand management.
This acquisition will help Iconix Lifestyle India in the long-term strategic approach to growing its brand presence in the country.
About Lee Cooper
Lee Cooper was founded in the year 1908 by Morris Cooper. It is an English-American clothing and footwear manufacturing company and has a specialty in the pieces of denim products and is headquartered in London, England. It is a multi-category, dual-gender brand and has a presence in around 126 countries, and has the retailing of more than 7,000 points of sale. The products offered by Lee Cooper are Jeans, Denim T-shirts, Sneakers, Backpacks, and Fanny Packs. Iconix Brand Group in the year 2013 had acquired Lee Cooper from Sun Capital Partners.
About Iconix Lifestyle India
Founded in the year 2012 under the Parent Group Iconix Brand Group, Iconix Lifestyle India is a joint venture between Reliance Brands Limited and Iconix Brand Group. It is the owner of 24 fashion and home brands from the Iconix portfolio for the Indian territory across fashion, lifestyle, and home.
This acquisition is quite interesting and we need to wait and watch what future unfolds for this deal. Till then, we can wish all the parties a stroke of good luck and a bright and successful future ahead.
