September 4: Chinese sporting goods manufacturer K-bird have released a statement announcing that they had ceased in the acquisition of Will's Fitness reportedly because that the two sides had failed to reach an agreement on the price and payment approach.
In March 2017, K-bird announced that they would buy the full 100% shares of Will’s Fitness by paying cash for the initial 25% and issuing new shares for the remaining 75%, with the value of the latter being estimated at RMB2.7 billion (US$413m).
In fact, prior to the statement, media reports had suggested that the deal had been closed. However, insiders said one of the reasons for pulling out of the deal was the low net profit and high asset-liability ratio of Will's Fitness' stakeholders which made the acquisition not a good choice for K-bird.
Founded in 1987, K-bird is a major company in China specializing in the manufacturing of sporting goods such as sports footwear and apparel. Will's Fitness is a fitness company founded in 1996 with 115 gyms around China, with their membership reaching 500,000.
Proofread by Raymond Fitzpatrick