Chinese sportswear maker Guirenniao Co. Ltd. plans to acquire part of the trademark rights of U.S.-based Prince Global Sports LLC for $20 million. The deal will give Guirenniao the rights to Prince trademark assets, including its websites and social media, the rights to develop and sell Prince-branded products in Greater China, including in Hong Kong, Macau and Taiwan, as wells as in South Korea. Prince is a famous manufacturer of tennis rackets, footwear and apparel. However, the private company has undergone financial challenges and filed for bankruptcy protection in 2012. The deal can help the Chinese buyer diversify its brands and markets, the company said in a filing to the Shanghai Stock Exchange on Saturday. Guirenniao, which is popular in smaller cities in China, said it will make use of Prince’s assets and will target high-end consumers in first- and second-tier cities. Trading on the Shanghai Stock Exchange, where Guirenniao lists, is closed during the week-long national holiday between Oct. 1 and Oct. 8. Contact reporter Coco Feng (renkefeng@caixin.com) You've accessed an article available only to subscribers VIEW OPTIONS
China's Guirenniao is to buy a portion of the trademark rights of struggling US-based Prince Global Sports, which would give the Chinese sportswear maker the rights to Prince trademark assets such as its social media, websites and rights to develop and sell Prince products in China, Hong Kong, Macau, Taiwan and South Korea. Prince, famous for its tennis rackets, filed for bankruptcy protection in 2012.