Chapter 482 (1/2)

Different from the common leveraged buyout in the 1980s, cersei capital did not intend to split and sell Ltd in a short period of time for quick cash out, but preferred to go public again after long-term operation.

Therefore, in terms of capital, cersei capital is unlikely to adopt the common short-term high interest rate lending and junk bond financing mode in the 1980s.

In order to raise the funds needed for the acquisition of Ltd, cersei capital has been preparing to issue a new fund for the acquisition before the formal acquisition.

After the acquisition, cersei capital has basically completed the fund raising work.

Although the acquisition of more than US $2 billion is far from being comparable to the acquisition of Reynolds nabesk with a total transaction value of US $33 billion, it is the largest private equity acquisition in the past two years against the background that the US has not completely stepped out of the aftermath of the collapse of the bond market a few years ago.

In order to give investors confidence and also for the investment consideration of westero system itself, after the deal was concluded, westero company soon announced that it would buy 10% of the shares of Ltd company at the agreed price, minus the other 10% of the shares reserved by the Wexner family. Cersei capital actually bought only 80% of the shares of Ltd company, and needed to pay US $1.96 billion.

The direct involvement of westero company makes the investors who signed the intention subscription agreement fulfill their fund subscription shares quickly, thus ensuring the successful completion of the acquisition.

The specific acquisition process will take another two months to complete, but Simon soon got in touch with Leslie Wexner, the founder of Ltd.

Leslie Wexner's rich history is very typical in this industry.

The first fashion shop started, and then the chain scale continued to increase in the next 20 years. Finally, it became a LTE company with thousands of chain stores.

Simon's biggest concern about Victoria's secret is actually the underwear chain brand Leslie Wexner bought from another businessman in 1982.

Although Victoria's secret development has been very rapid in recent years, when it comes to LTE, you will only think of Vimy, but in fact, Leslie Wexner still takes the sub brands of women's fashion and sports fashion under LTE as the core of his business.

As a result, compared with a later Weimi brand, which accounted for more than 60% of the sales of the parent company, Weimi now only accounted for more than 20% of the sales of the Ltd company in 1991.

The economic downturn, excessive expansion and abandonment of the original ”Limited Brands” business strategy led to the unrestrained pursuit of more fields, which eventually led to the collapse of the U.S. bond market.

In fact, Leslie Wexner, the founder of Ltd, is a very radical businessman, which is very similar to Simon's impression to the outside world.

The rapid rise of the westero system in just six years is like a miracle. Simon's bold and adventurous measures in this process can't even be described as radical.

Simon, however, has always been clear about what he is doing.

There are many unreasonable layouts of westero company in the eyes of outsiders, such as the crazy investment in igritte company in the past two years. For Simon, it's just taking the lead in some industries destined to break out in advance.

Leslie Wexner could not have Simon's advantage as a prophet.

In the past two decades, the continuous expansion of LTE is more than just a natural move of an adventurous businessman.

Fashion has long been a very competitive Red Sea market.

The continued over expansion of LTE has also led to the inevitable homogenization problem of many fashion companies: it is difficult for the fashion industry to play too many new tricks after all.

The serious homogenization of clothing products, too bloated enterprise scale and increased relative cost inevitably lead to the decline of brand competitiveness.

In recent years, the sales volume of women's fashion and sportswear of Ltd has continued to decline with the downturn of the economic situation. The only thing that has gone against the trend is Victoria's secret, which focuses on underwear.

Simon wondered privately whether this was the legendary lipstick effect.

However, in the original time and space, the company began to turn more attention to the operation of Weimi in the 1990s, and returned to the ”limited brand” business strategy focusing on core brands, which was probably inspired by the market performance of Weimi in the early 1990s.

Ltd is headquartered in Columbus, Ohio.

Ohio is located in the northeast of the United States, bordering Pennsylvania to the East and the Great Lakes to the north. Different from the mountainous western states and counties, Ohio is located in the endless Eastern Plain. As the capital of Ohio, Columbus is right in the middle of this plain.

After returning from Australia, Simon and Janet quickly accepted Leslie Wexner's invitation to visit Columbus, Ohio.

Of course, there are other reasons.Simon's ”Butterfly Effect” on the world is becoming more and more obvious, but it has not changed the way things happen.

For example, the Los Angeles riots at the end of April 1992.

The cause of the incident is that in March 1991, Rodney King, a black youth, was violently treated by the Los Angeles police for his behavior of resisting arrest due to a wine rack and a drag racing car. After the incident, he was filmed as a video by passers-by and sold to the television station. As a result, the major TV stations used to ”create topics” cut out the first half of the video of Rodney King's various anti arrest actions, leaving only pictures of the other party being beaten on TV.

On April 28, the Los Angeles District Court, based on the complete record of the incident, acquitted four police officers involved, which triggered the dissatisfaction of the black community and led to large-scale riots.

Although the riot only happened in South Central Los Angeles in my memory, who knows if there will be any abnormal changes this time.

The first time it happened, Simon quietly left Los Angeles and joined Janet from New York in Columbus.

As a matter of habit, Columbus has already bought a 50 acre farm style manor in advance.

Unlike Los Angeles and other big cities along the coast, Columbus, located in the Central Plains, is very calm.

In fact, this is not without reason. Located in the conservative northeast of the United States, the proportion of people of color in Ohio is far lower than that in the East and West Coast states, and the proportion of white people in this era is still more than 90%.

Simon didn't feel much about the riot, and it wasn't the first time this had happened in the country.

Leslie Wexner didn't mean to talk about the sensitive incident at the farm estate in the northern suburb of Columbus.

For politicians, it's wrong to go to either side of the issue. Therefore, President Bush didn't come forward with a friendly appeal until two days after the riot. It's an election year, and the candidates are surprisingly reticent about the riots.

It's all votes!

Simon and Leslie Wexner are both public figures. Even if they don't have the scruples of professional politicians, they will make more mistakes if they say too much.

Although it is clear that the extreme political correctness of a country is often the result of this constant silence and concession, Simon did not try to change anything.

Some deep-rooted pessimism in his heart made him more accustomed to watching too many things coldly.

We can't talk more about politics. Of course, we still talk about business.

Today is May 1st, it is already the end of spring and the beginning of summer.